The Great Recession Lasted Longer and Was Deeper Than the Average

question 162

Multiple Choice

The Great Recession lasted longer and was deeper than the average recession,in part,because

• A) oil-producing countries dramatically increased oil prices,causing very high inflation.
• B) there was a dramatic cut in military spending in the years leading up to the recession.
• C) the Federal Reserve refused to increase the money supply to stimulate aggregate demand.
• D) the government raised tax rates in an effort to balance the federal budget.
• E) there was a major financial crisis following the collapse of housing prices.

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Definitions:

Shareholder

An individual or entity that owns shares in a corporation, thus holding a portion of the company's equity and possibly influencing its governance.

State Charter

A legal document granting a municipality the authority to operate in certain ways, essentially the municipal version of a constitution.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government or in two different countries.

Corporate Income

The total income or earnings generated by a corporation, before deductions such as expenses, taxes, and interest.