A random walk is:

Question

A random walk is:

Quizplus · Accepted Answer

A random walk is the unpredictable movement over time of a variable. It is a mathematical model used to describe the movement of a variable, such as the price of stocks or the value of a currency, that is subject to random fluctuations over time. The movement of GDP growth per capita in the long run is not considered a random walk, as it is affected by many factors and is not purely random. The economic fluctuations in the short run may be influenced by random factors, but they are not necessarily a random walk as they can also be affected by factors such as government policy and market conditions.

A Random Walk Is