Total factor productivity growth is that part of economic growth due to
A)capital growth plus labor growth.
B)capital growth less labor growth.
C)capital growth times labor growth.
D)neither capital growth nor labor growth.

Question

Quizplus · Accepted Answer

Total factor productivity (TFP) growth refers to the growth in output that cannot be explained by changes in the inputs of labor and capital. Therefore, it is neither due to capital growth nor labor growth, and the correct answer is D.

Total Factor Productivity Growth Is That Part of Economic Growth