Measurement Errors of Changes in the Solow Residual During Recessions

question 12

Multiple Choice

Measurement errors of changes in the Solow residual during recessions are most likely caused by

• A) underutilization of labour and capital.
• B) underutilization of labour, but not of capital.
• C) underutilization of capital, but not of labour.
• D) mismeasurement of real GDP.
• E) constant real wage rate.

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