The 2007-2009 Recession Was Caused by A(n)

question 113

Multiple Choice

The 2007-2009 recession was caused by a(n)

• A) increase in demand following a rapid increase in the money supply.
• B) drop in aggregate supply caused by a slowdown in productivity growth.
• C) decrease in supply caused by an increase in oil prices.
• D) decrease in aggregate demand triggered by a financial crisis.

---

Definitions:

Static Reasoning

A cognitive understanding that things do not change, mistakenly assuming that the world is always in the same state as it is currently observed.

Preoperational Thought

Preoperational thought is a stage in Piaget's theory of cognitive development where children ages 2 to 7 have not yet developed the ability to think logically.

Zone of Proximal Development

A concept in education and cognitive psychology referring to the difference between what a learner can do without help and what they can achieve with guidance and encouragement from a skilled partner.

Scaffolding

An educational approach where a more knowledgeable person provides support and gradually removes it as the learner becomes more competent.