Most economists attribute the Great Moderation experienced in the United States during the 1990s mainly to:
A) good fortune.
B) slowing productivity growth.
C) aggressive fiscal policy.
D) better understanding and use of monetary policy.

Question

Quizplus · Accepted Answer

Most economists believe that the Great Moderation in the US during the 1990s was mostly due to the improved understanding and use of monetary policy by the Federal Reserve, which helped stabilize the economy and reduce volatility in inflation and output. While other factors like good fortune and fiscal policy may have played a role, they are generally considered to be secondary to the effects of monetary policy.

Most Economists Attribute the Great Moderation Experienced in the United