The Behavior of the Solow Residual Suggests That When Current

Multiple Choice

The behavior of the Solow residual suggests that when current total factor productivity increases

A) it becomes more difficult to predict future total factor productivity.
B) future total factor productivity is also likely to increase.
C) such increases are temporary, so we can draw no conclusions about the likely behavior of future total factor productivity.
D) future total factor productivity is likely to decrease.