Which of the Following Most Accurately Describes the Behavior of the U.S.economy

question 79

Multiple Choice

Which of the following most accurately describes the behavior of the U.S.economy during the 2007-2009 recession?

• A) Aggregate demand fell as business investment and consumer spending declined, which put downward pressure on prices, shifting SRAS to the right.
• B) Aggregate demand fell primarily as a result of reduced consumption while aggregate supply increased due to continued growth in productivity.
• C) Aggregate demand fell due to a reduction in business investment while aggregate supply declined due to a reduction in productivity.
• D) Aggregate demand fell due to the bursting of the housing bubble while aggregate supply fell due to slower productivity growth.

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Definitions:

Live Longer

Refers to the increase in lifespan experienced by populations over time, often attributed to advances in healthcare, nutrition, and living conditions.

Health Care Costs

The expenses associated with medical care, including treatments, procedures, medications, and hospital stays.

Older Americans

Individuals who are in the later stage of life, often defined as being 65 years of age or older in the United States, with distinct social, economic, and health characteristics.

Social Security

A government program that provides monetary assistance to people with inadequate or no income, particularly the elderly, disabled, and families with children.