The Random Walk of GDP Model Asserts That

question 46

Multiple Choice

The random walk of GDP model asserts that

• A)aggregate demand fluctuations are fairly short-lived
• B)aggregate supply shocks tend to have a long-lasting impact
• C)there are frequent transitory demand side shocks but infrequent permanent supply shocks
• D)after a severe supply shock the economy has no tendency to return to the growth trend
• E)all of the above