Possible Explanations That Have Been Offered for the Great Moderation

question 26

Multiple Choice

Possible explanations that have been offered for the Great Moderation experienced in the United States include all of the following except:

• A) good fortune.
• B) economies that have become more flexible in absorbing shocks.
• C) calm financial markets.
• D) better understanding and use of monetary policy.

---

Definitions:

Philosophical Disputation

A method of argument and debate used in philosophy to explore and resolve conflicting viewpoints or theories.

Logical Analysis

The systematic examination of arguments and statements through reasoning to assess their validity and infer conclusions.

Abstract Thinking

The ability to think about objects, principles, and ideas that are not physically present, involving complex thought processes like analysis and synthesis.

Cognitive A-B-C Model

A psychological framework that helps to understand the relationship between an Activating event, Beliefs, and the Consequences of those beliefs, emphasizing the role of cognition in emotional and behavioral responses.