During the Recession of 2008 - 2009

question 105

Multiple Choice

During the recession of 2008 - 2009:

• A)the federal government undertook various policies intended to stimulate private spending and investment.
• B)the federal government undertook various policies that ultimately resulted in an inflationary expenditure gap.
• C)the federal government was able to achieve a balanced budget even though it undertook various policies to stimulate the economy.
• D)the federal government took no action to stimulate the economy, and instead left it to the private sector to try to eliminate the recessionary gap.

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Definitions:

Optimal Level

The most favorable or efficient level of functioning, performance, or operation.

Drive Theory

A theory suggesting that behavior is motivated by the need to reduce internal tension caused by unmet biological needs.

Alertness

The state of being vigilant and ready to respond quickly to potential dangers or problems.

Homeostasis

The self-regulating process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.