One model which Nelson and Plosser (1982) tested empirically is the random walk model. An implication of this model is that O a. output fluctuates around a constant level due to temporary shocks. O b. current shocks to output have affect output in the future, but only for a limited time span. current shocks to output affect output in the future permanently. shocks to output must be demand shocks. O c. O d.

One model which Nelson and Plosser (1982) tested empirically is the random walk model. An implication of this model is that O a. output fluctuates around a constant level due to temporary shocks. O b. current shocks to output have affect output in the future, but only for a limited time span. current shocks to output affect output in the future permanently. shocks to output must be demand shocks. O c. O d.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 5E

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