After the Official Start of the Recession in the U

question 52

Multiple Choice

After the official start of the recession in the U.S. in 2007, oil prices:

• A) began to fall because of decreased demand in China and India.
• B) began to fall because of decreased demand in the U.S. and Europe.
• C) began to rise because of increased demand in China and India
• D) began to rise because of increased demand in the U.S. and Europe.

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Definitions:

Double-Digit Inflation

An inflation rate that reaches or exceeds 10%, indicating rapid increases in prices.

Double-Digit Unemployment

A situation where the unemployment rate reaches or exceeds 10 percent, indicating a high level of joblessness.

Stagflation

A condition of slow economic growth and relatively high unemployment—a period of stagflation—accompanied by rising prices (inflation).

Misery Index

An economic indicator created by summing the unemployment rate and inflation rate, aiming to provide a snapshot of the average citizen's economic well-being.