During the U.S. Great Moderation, ________
A) the volatility in the inflation rate declined by 50%
B) the volatility in the rate of growth of real output declined by 33%
C) the economy stabilized from the higher uncertainty of the 1970s
D) all of the above
E) none of the above
D
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Due in part to record low interest rates on U.S. Treasury Bonds,
A) investors searching for higher yields bought corporate bonds B) interest rates on corporate bonds rose C) corporations faced higher borrowing costs D) many corporations were at greater risk of defaulting
If more firms chose to pay efficiency wages, which of the following would shift to the right?
a. both the long-run Phillips curve and the long-run aggregate supply curve b. the long-run Phillips curve but not the long-run aggregate supply curve c. the long-run aggregate supply curve but not the long-run Phillips curve d. neither the long-run Phillips curve nor the long-run aggregate supply curve