According to the Random Walk of GDP Model, When Trying

Multiple Choice

According to the random walk of GDP model, when trying to investigate business cycles, it is very important to

A) know whether people's expectations are rational or adaptive
B) assume that markets do not clear rapidly
C) realize that markets are imperfectly competitive
D) use the right trend model when trying to identify shocks
E) know the impact of changes in stock values on the level of consumption