Which of the Following Statements Is True of the Great

question 33

Multiple Choice

Which of the following statements is true of the Great Recession?

• A)It was the largest economic downturn since the Great Depression.
• B)Its impact was limited to the United States.
• C)It began in 1993.
• D)The economy recovered from the Great Recession in 2007.

---

Definitions:

Neoclassical Assumption

A perspective in economics that assumes individuals have rational preferences, markets are capable of reaching equilibrium, and information is symmetrically distributed.

System 1

A term often used in psychology and behavioral economics, referring to the brain's fast, automatic, and intuitive approach to decision-making.

Rational Behavior

Human behavior based on comparison of marginal costs and marginal benefits; behavior designed to maximize total utility.

System 2

A term often used in psychology to refer to the deliberate, effortful, and analytical mode of thinking, contrasted with fast, automatic System 1 thinking.