The Great Recession That Started in 2007 Was Triggered by Shocks

question 129

Multiple Choice

The Great Recession that started in 2007 was triggered by shocks in which of the following economic sectors?

• A)gold market and stock market
• B)international trade and foreign exchange markets
• C)real estate and financial markets
• D)consumer and government spending

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Definitions:

Majority Vote

A decision rule in which the option that receives more than half of the votes is chosen.

Economic Efficiency

A state where resources are allocated in the most effective way possible, maximizing output without wasting any inputs, ensuring that goods and services are produced at the lowest possible cost and distributed to those who value them most.

Deregulation

The process of removing or reducing government controls and restrictions in an industry to allow for more competition and efficiency.

Pork-Barrel Politics

The allocation of government spending for localized projects secured primarily to bring money to a representative's district, often without proper consideration of the benefits or costs.