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:

High Familiarity

A situation or condition where parties involved have a deep understanding or knowledge of each other, which can influence the dynamics of interactions or negotiations.

Power Distance

A cultural dimension that describes the extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.

Organizations

Structured groups of people working together to achieve common goals.

Unequally Distributed

The condition in which resources, power, or opportunities are not shared equitably among all parties or individuals involved.