The Great Moderation consensus about macroeconomic policy is that monetary policy:
A) is effective.
B) can reduce the unemployment rate below the natural rate.
C) makes the economy unstable.
D) should follow a policy rule.

Question

Quizplus · Accepted Answer

During the Great Moderation, it was widely believed that monetary policy was effective in stabilizing the economy by controlling inflation and smoothing out business cycles.

The Great Moderation Consensus About Macroeconomic Policy Is That Monetary