In the context of economic growth, the Solow residual measures:
A. Contribution of capital accumulation only
B. Contribution of natural resources only
C. Contribution of technological progress (total factor productivity)
D. Contribution of labour force growth only
Answer: Option C
Solution (By JKSSB Mock Tests)
The Solow residual is the portion of output growth that cannot be explained by the growth of capital and labour inputs; it is attributed to technological progress or total factor productivity.
Explanation:
A soft currency is one that is less widely used in international trade and finance and may experience greater volatility or convertibility restrictions compared with hard currencies.
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