To some economists, the "Great moderation" means:
A) a small change in real wages.
B) a low inflation rate.
C) a low unemployment rate.
D) low output growth variability.
E) low money supply growth.

Question

Quizplus · Accepted Answer

The "Great moderation" refers to a period of reduced economic volatility in the United States from the mid-1980s to the mid-2000s, marked by a reduction in the variability of output growth. This means that option D, low output growth variability, is the best choice. While low inflation and unemployment rates may also be part of the "Great moderation," they are not the defining characteristic.

To Some Economists, the "Great Moderation" Means