What makes the macroeconomic performance of the 1993 to 1998 period so unusual is the
A)simultaneous occurrence of unemployment and inflation increases.
B)simultaneous occurrence of real GDP decreases and inflation rate increases.
C)occurrence of real GDP decreases while the unemployment rate increases.
D)simultaneous occurrence of reduced unemployment rates and falling inflation rates.

Question

Quizplus · Accepted Answer

The period from 1993 to 1998 is notable for experiencing both reduced unemployment rates and falling inflation rates, a phenomenon often referred to as "The Great Moderation." This period defied the traditional Phillips curve trade-off, which suggests an inverse relationship between inflation and unemployment, making it an unusual macroeconomic performance.

What Makes the Macroeconomic Performance of the 1993 to 1998