What Event Led to the End of the Great Moderation

question 61

Multiple Choice

What event led to the end of the Great Moderation?

• A) The Great Depression
• B) The Great Crash
• C) Stagflation
• D) The Great Recession

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Definitions:

Federal Outlays

The total spending by the federal government, including on defense, education, health services, and social security.

Fiscal Stimulus Package

Government measures, usually involving increased public spending and tax cuts, aimed at boosting economic activity during a downturn.

Federal Government

A system of government in which powers and responsibilities are divided between a national government and state or provincial governments.

Surplus Federal Budget

A situation where the federal government's revenues exceed its expenditures within a given fiscal period.