Refer to the following table when answering the following questions.
Table 4.1: Production Model's Prediction for Per Capita GDP (US = 1)
(Source: Penn World Tables 9.0)
-Considering the data in Table 4.1, the explanation for the difference between the predicted and actual level of output is called ________. If you compare South Africa's observed and predicted output, this difference is equal to ________.
A) total factor productivity; 0.37
B) the Solow residual; 2.71
C) Dirac's delta; 0.14
D) capital's share of GDP; one-third
E) labor's share of GDP; two-thirds
Correct Answer:
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