In the Mainstream View, the Severe Recession of 2007-2009 Was

question 46

Multiple Choice

In the mainstream view, the severe recession of 2007-2009 was caused by

• A)an aggregate-supply shock, which caused the AS curve to shift left.
• B)a financial crisis that caused a shrinkage in investment and consumption spending, thereby reducing aggregate demand.
• C)monetary factors, specifically the excessive expansion of money supply brought about by the Federal Reserve, starting in the recession of 2001.
• D)a huge and sudden drop in the velocity of money, causing a significant reduction in both nominal and real GDP.

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Definitions:

Confrontational

Describe an approach or interaction that is aggressive or contentious, often leading to confrontation or conflict.

Aversive Conditioning

A form of behavior therapy that involves using negative stimuli to reduce or eliminate undesirable behaviors.

Alcoholism

A chronic disease characterized by uncontrolled drinking and obsession with alcohol, often leading to health problems and impaired social functioning.

Obesity

A medical condition characterized by excessive body fat that presents a risk to health, typically measured by body mass index (BMI).