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4a. Define the term Solow residual. 4b. Explain why a large Solow residual reflects shortcomings of the Solow growth model. 4c. If output per person
4a. Define the term "Solow residual." 4b. Explain why a large Solow residual reflects shortcomings of the Solow growth model. 4c. If output per person is growing at a rate of 3% per year, capital per person is growing at a rate of 4% per year, and the elasticity of output with respect to capital is 0.5, calculate the Solow residual.
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