The Random Walk of GDP Model Assumes That

question 2

Multiple Choice

The random walk of GDP model assumes that

• A)output follows a trend which can be explained by capital improvements
• B)output generally follows a steady trend but there are always some transitory business fluctuations
• C)there is no tendency for GDP to return to trend after a supply-side disturbance
• D)permanent changes in output are infrequent, so changes in aggregate demand always dominate
• E)all output fluctuations are transitory

---

Definitions:

Michael Jordan

A retired American professional basketball player widely regarded as one of the greatest basketball players of all time.

Model Airplane

A miniature representation of an airplane, constructed for recreational purposes or as a hobby project.

Subdials

Smaller dials or displays within a larger watch face that show additional information like date or stopwatch functions.

Tachometer

An instrument used to measure the rotation speed of a shaft or disk, as in a motor or other machine.