Among the Factors That Might Have Led to the Outbreak

question 131

Multiple Choice

Among the factors that might have led to the outbreak of the 2007-09 recession, which most likely caused a shift of the IA line instead of the AD curve?

• A)Sharp increases in commodity prices.
• B)Credit crunch.
• C)Financial crisis.
• D)Collapse of the housing bubble.
• E)Stock market collapse.

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Definitions:

Social Regulation

Rules imposed by government to correct market failures and achieve social goals, which include protecting consumers, workers, and the environment.

Net Benefits

The difference between the total benefits and total costs of a particular action or decision.

Social Regulation

Consists of policies and rules designed to correct behaviors that are not in the best interest of society, including environmental protection and worker safety.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.