(Consider This) in the Mainstream View, the Severe Recession of 2007-2009

question 248

Multiple Choice

(Consider This) 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:

Cancer

A disease characterized by the uncontrolled growth and spread of abnormal cells in the body.

Pyxis

A brand name for an automated medication management system commonly used in healthcare settings to dispense medications securely and efficiently.

Electronic

Relating to devices or systems that operate using the flow of electrons, such as computers and other digital equipment.

Drug-Dispensing

The process of preparing, packaging, and giving out medications to patients, typically performed by a pharmacist or a specialized machine.