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

Question

Quizplus · Accepted Answer

The random walk of GDP model asserts that all of the above are true.

The Random Walk of GDP Model Asserts That