The most common measure of productivity shocks used by real business cycle theorists is
A)the Solow residual.
B)average labor productivity.
C)the change in the capital stock.
D)unit labor costs.

Question

Quizplus · Accepted Answer

The Solow residual measures productivity growth that cannot be accounted for by capital and labor inputs, making it a common measure of productivity shocks used by real business cycle theorists.

The Most Common Measure of Productivity Shocks Used by Real