The Random Walk of GDP Model Asserts That

Multiple Choice

The random walk of GDP model asserts that

A) demand-side disturbances are not very important
B) most important fluctuations occur randomly on the demand side
C) there is a high elasticity of labor supply in response to temporary changes in wage rates
D) there are many transitory and random fluctuations over the business cycle, but the economy always returns to its growth trend
E) the performance of the economy is closely connected to stock market performance, which follows a random walk