The Great Moderation describes the period
A)of relatively steady growth in real GDP between 1991 and 2008.
B)of relatively steady growth in real GDP after the year 2000.
C)between 2000 and 2008 when potential GDP did not increase.
D)between 1990 and 2005 when real GDP grew significantly more slowly than did potential GDP.
E)of very slow growth in real GDP after 1990.

Question

Quizplus · Accepted Answer

The Great Moderation describes the period of relatively steady growth in real GDP between 1991 and 2008. The term was coined by economists to describe the decrease in economic volatility and fluctuations during this time, with smoother growth patterns and fewer recessions compared to previous decades.

The Great Moderation Describes the Period