In growth accounting,the residual,gA,is so named because:

Question

Quizplus · Accepted Answer

The residual in growth accounting, gA, is so named because it represents the unobserved Total Factor Productivity (TFP) growth. It is the portion of economic growth that cannot be directly attributed to growth in inputs such as labor and capital. The term "residual" refers to the fact that it is the remaining portion of growth that is not accounted for by the other factors. Therefore, option D is the correct answer.

In Growth Accounting,the Residual,gA,is So Named Because