The Solow residual:
A)is not directly observable.
B)attributed to labour force growth.
C)is attributed to capital stock growth.
D)is attributed to labour force growth and capital stock growth.

Question

Quizplus · Accepted Answer

The Solow residual is a measure of productivity growth that cannot be directly observed, as it reflects factors such as technological progress and efficiency gains that are difficult to quantify. It is not attributed to labour force growth or capital stock growth specifically, but rather represents the portion of economic output that cannot be attributed to changes in inputs such as labour and capital.

The Solow Residual