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

Question

Quizplus · Accepted Answer

The Solow residual is a measure of total factor productivity, which is the portion of output that cannot be explained by inputs of capital and labour alone. It captures the effects of technology improvement, knowledge advancement, and efficiency gains on economic growth.

The Solow Residual Is a Measure of