Which of the following is a possible reason for the improved economic performance between 1985 and 2007?
A)Demand Shocks have become smaller and less important.
B)Monetary and fiscal policy have become more effective.
C)Change in conditions that make monetary and/or fiscal policy more powerful.
D)All of the above

Question

Quizplus · Accepted Answer

All three options could have contributed to the improved economic performance between 1985 and 2007. Smaller and less important demand shocks may have led to more stable economic conditions, while better monetary and fiscal policy could have helped boost growth and stability. Additionally, changes in conditions that make these policies more effective could have further contributed to the positive economic outcomes during this period.

Which of the Following Is a Possible Reason for the Improved