The Solow residual is a measure of
A) average labour productivity.
B) average capital productivity.
C) total factor productivity.
D) the rate of growth of real GDP.
E) the marginal product of labour.

Question

Quizplus · Accepted Answer

The Solow residual measures the portion of output growth that cannot be explained by increases in labor or capital inputs, which is due to advancements in total factor productivity.

The Solow Residual Is a Measure of