(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:

Irresistible Impulse Test

A legal standard to determine insanity, assessing whether a defendant was unable to control his or her actions at the time of the crime due to mental illness.

Not in Control

A feeling or state where an individual perceives they don't have power or influence over situations or themselves.

American Psychiatric Association

A leading organization dedicated to the advancement of psychiatry and mental health.

Insanity Pleas

A legal defense where the defendant claims they were not responsible for their actions due to psychiatric illness at the time of the crime.