Which of the following factors have not contributed to the "Great Moderation" of real GDP in the U.S.over the past 20 years?
A)Better inventory management
B)Better macroeconomic policy
C)Greater availability of financial products for lending and borrowing
D)Imposition of ceiling on interest rates
E)Smaller real shocks

Question

Quizplus · Accepted Answer

Imposition of ceiling on interest rates would likely have a negative impact on the economy, as it could lead to distortions in the credit market and inefficient allocation of resources. Therefore, it is unlikely to have contributed to the "Great Moderation" of real GDP.

Which of the Following Factors Have Not Contributed to the "Great