
Percentage deviations from trend in the Solow residual are
A) unrelated to the business cycle.
B) procyclical and smaller than percentage deviations from trend in GDP.
C) procyclical and have about equal magnitude as percentage deviations from trend in GDP.
D) procyclical and larger than percentage deviations from trend in GDP.
E) related to changes in the labour force.
Correct Answer:
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