Refer to the Following Table When Answering the Following Questions

question 8

Multiple Choice

Refer to the following table when answering the following questions.
Table 4.1: Production Model's Prediction for Per Capita GDP (US = 1) (Source: Penn World Tables 9.0)
-Considering the data in Table 4.1, the explanation for the difference between the predicted and actual level of output is called ________. If you compare India's observed and predicted output, this difference is equal to ________.

• A) labor's share of GDP; two-thirds
• B) the Solow residual; 4.5
• C) liquidity; 0.05
• D) capital's share of GDP; one-third
• E) total factor productivity; 0.22

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