The article compares different models to understand how technology shocks affect economic fluctuations. They find that a model with a difference-stationary process better explains the relationship between technology shocks and output, while a trend-stationary model fits volatility patterns better. The study shows that a stochastic growth model is more effective than a deterministic growth model in explaining the Great Moderation. Additionally, allowing for more financial flexibility improves the model's ability to capture the slowdown in volatility during the mid-1980s.