The Great Moderation in part refers to the moderate variability in real GDP that occurred after the 1981€“1982 recession and before the 2008€“2009 recession. In Figure 3.12, what do you observe about the behavior of the deviations from trend in the inflation rate over the period 1947€“2015? Relate this to the Great Moderation experience, and discuss.

Figure 3.12:

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Inflation Rate 4 GDP -4 -6 1940 1950 1960 1970 1990 2000 2010 2020 1980 Year Percentage Deviation From Trend 6.