Harrod Domar model was the main idea behind the __________ Five Year Plan.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. First.
The Harrod-Domar model was the main idea behind the First Five Year Plan of India. This model emphasizes the crucial role of investment in driving economic growth. It posits that a higher rate of investment leads to a faster rate of economic growth, provided other factors like technology and labor productivity remain constant. The First Five Year Plan, launched in 1951, focused heavily on capital formation and investment in infrastructure projects, aligning with the core principles of the Harrod-Domar model.