The Great Moderation
The Great Moderation refers to a historical period of reduced economic volatility that occurred before the 2008 global financial crisis. This era was characterized by more limited fluctuations in economic output compared to earlier periods.
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Economics
Economy
Introduction to Macroeconomics Course
Ch.3 Aggregate demand and the multiplier model - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Ch.5 Macroeconomic policy: Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
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Recession
Economic Boom
Historical Examples of Severe Economic Downturns
Correlation between the Business Cycle and Unemployment Rate
Investigating the Drivers of Economic Fluctuations
Integration of Supply-Side and Demand-Side Models
An economy observes the following trends over several consecutive months: the total production of goods and services decreases, the rate of joblessness rises, and average household incomes fall. Based on the typical pattern of cyclical economic movements, what do these simultaneous trends most strongly suggest?
Arrange the following four phases of an economic cycle into a logical sequence, starting from the point of maximum economic output.
Analyzing a Country's Economic Performance
The term 'business cycle' accurately describes the pattern where an economy's growth rate fluctuates, slowing down during certain periods but always remaining positive.
Economic Cycle Transitions
Evaluating Claims of Economic Stability
Match each phase of an economic cycle with its corresponding description of economic activity.
Differentiating Economic Slowdown from Contraction
An economy has just experienced a period where its total output reached a maximum level after several years of steady increases. In the months that followed, growth began to slow, and the unemployment rate, which had been falling, started to level off and then slowly rise. Which phase of the economic cycle has this economy most likely just passed through?
The recurring, cyclical pattern of an economy shifting between periods of growth and periods of decline is commonly referred to as the ____.
Concept of Economic Recession
NBER Definition of Recession
Alternative Definition of Recession
The Great Moderation
The Great Depression as a Major Economic Downturn
The COVID-19 Pandemic Recession
Modeling Economic Fluctuations
Between the 1870s and the late 1930s, the share of the U.S. workforce employed in agriculture fell from approximately 50% to 20%. Despite this significant shift away from a sector known for its sensitivity to weather and commodity price shocks, this period still experienced severe economic fluctuations, culminating in the Great Depression. What is the most logical conclusion that can be drawn from these facts?
The reduction of the U.S. agricultural workforce from approximately 50% in the 1870s to 20% by the late 1930s was, on its own, sufficient to end the period of high economic volatility that characterized the era.
Agriculture's Role in Pre-WWII Economic Volatility
Evaluating the Agricultural Sector's Role in Pre-WWII Instability
Match each economic era or concept with its correct description regarding U.S. economic volatility.
Evaluating an Economic Argument
The fact that the U.S. economy experienced severe fluctuations, including the Great Depression, during a period when agricultural employment fell from 50% to 20% demonstrates that the decline of this one sector was ____ on its own to create broad economic stability.
Arrange the following descriptions of U.S. economic history in the correct chronological order to demonstrate the relationship between the agricultural sector's decline and overall economic volatility.
Critiquing a Historical Economic Argument
Historical data shows that between the late 1800s and the 1930s, the proportion of the U.S. labor force in farming decreased significantly. During this same period, the overall economy continued to experience extreme boom-and-bust cycles. Which of the following hypotheses is most directly challenged by this combination of facts?
The Great Moderation
The Declining Role of Agriculture and Persistent Pre-WWII Economic Volatility
Correlation Between Government Size and Post-War Economic Stability
The Great Moderation
Measuring Government Size
Learn After
John F. Kennedy
An economist is studying the economic history of Country X from 1880 to 2020. They observe the following patterns in the country's annual economic growth data:
- From 1880 to 1945, the economy experienced numerous sharp downturns, with growth frequently falling below -5% and sometimes as low as -15%.
- From 1946 to 2020, downturns were less common and significantly less severe, with negative growth rarely exceeding -2%.
Based only on this information, what is the most accurate conclusion the economist can draw about the long-term performance of Country X's economy?
Evaluating an Economic Argument
The primary reason for the increased economic stability observed in the United States after the 1940s was the steady decline of the volatile agricultural sector. As farming became a smaller part of the economy, the deep recessions common in the late 19th and early 20th centuries naturally disappeared.
Contrasting US Economic Eras
The Significance of Post-War Economic Stability
Match each description of economic performance to the historical period it most accurately characterizes.
Interpreting Long-Run Economic Data
The historical period of markedly reduced economic volatility and more consistent growth in the U.S. economy that began after World War II is known as ______.
An economic historian notes that after the 1940s, businesses in the U.S. found it easier to engage in long-term financial planning and large-scale investment projects. This contrasts sharply with the pre-1940s era, where such planning was frequently disrupted by economic turmoil. Which underlying change in the macroeconomic environment is the most direct explanation for this shift in business behavior?
Analyzing Historical Economic Performance
Influence of Post-War Economic Stability on Kennedy's Economic Advisors