Changes in total factor productivity are also called
A)the marginal product of labor
B)the marginal product of capital
C)changes in input costs
D)the Cobb-Douglas residual
E)the Solow residual

Question

Quizplus · Accepted Answer

Changes in total factor productivity are commonly referred to as the Solow residual. This residual measures the unexplained factors that contribute to economic growth, which are not attributed to labor or capital inputs.

Changes in Total Factor Productivity Are Also Called