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

---

Definitions:

Democracy

A governing structure where the populace holds power, either ruling directly or via representatives chosen through free elections.

Constitutional Protection

A safeguard within a country's constitution that ensures the rights and liberties of its citizens are protected against infringement.

Electoral Democracy

A system of government where leaders are elected through regular, free, and fair elections to represent the interests of the populace.

Citizens' Rights

The legal entitlements and protections granted to individuals as members of a state or country, ensuring their freedom and equality under law.