a) What are meant with permanent and transitory fluctuations according to random walk of GDP theory? b)

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a) What are meant with permanent and transitory fluctuations according to random walk of GDP theory?

b) One of the issues debated in real business cycle theory is the disturbance that hit the economy. Explain what is meant with this disturbance.?

c) Compare between proposition by perfect foresight model and Lucas model regarding how Monetary Policy can effect output in the short and long run. ?

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Authors: Robert L Sexton

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Posted Date: Feb 10, 2024 01:45 AM

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a) What are meant with permanent and transitory fluctuations according to random walk of GDP theory? b)

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Random Walk Theory of GDP Permanent and Transitory Fluctuations The Random Walk theory suggests that changes in GDP are unpredictable and randomsimila... View the full answer

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