According to research by Stock and Watson,the recent decline in volatility in many macroeconomic variables was a
A)sudden drop that occurred around 1984.
B)gradual decline throughout the 1980s.
C)sudden drop that occurred around 1990.
D)gradual decline throughout the 1990s.

Question

Quizplus · Accepted Answer

Stock and Watson's research identified a sudden drop in the volatility of many macroeconomic variables around 1984, marking the beginning of what is often referred to as the "Great Moderation."

According to Research by Stock and Watson,the Recent Decline in Volatility