Which of the Following Contributed to the Crisis of 2008

question 93

Multiple Choice

Which of the following contributed to the crisis of 2008?

• A) a doubling of the price of imported oil during 2007-2008
• B) a sharp increase in the price of housing during 2008
• C) inclement weather in 2008
• D) falling resource prices and a reduction in the cost of production

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Definitions:

Potential Output

The maximum amount of goods and services an economy can produce when it utilizes all of its resources efficiently, without causing inflation.

Golden Age

A period of great happiness, prosperity, and achievement, often idealized in historical contexts or specific fields.

Fiscal Policy

The use of government spending and taxation to influence the economy, including policies aimed at reducing unemployment, controlling inflation, and fostering economic growth.

Election Year

A year in which a formal decision-making process is conducted through which citizens vote to choose public officials or to decide on public policy issues.