Which of the Following Best Summarizes the Main Causes of the Great

question 77

Multiple Choice

Which of the following best summarizes the main causes of the Great Recession?

• A) Oil-producing countries deliberately raised the price of petroleum,leading to inflation and a deep recession.
• B) The Federal Reserve raised short-term interest rates very high in an effort to decrease inflation,which also drove the economy into a recession.
• C) The end of overseas war efforts led to a deep decrease in federal spending,which reduced employment and caused a recession.
• D) The stock market collapsed following the end of a bubble in technology stock prices,which caused a decrease in investment spending and a recession.
• E) The collapse of housing prices led to decreased wealth and significant problems in financial markets,as well as a decrease in expected income and a stock market collapse.

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Definitions:

Congress of Industrial Organizations

Umbrella organization of semiskilled industrial unions, formed in 1935 as the Committee for Industrial Organization and renamed in 1938.

Workplace Democracy

refers to a variety of arrangements intended to increase employees' involvement in decision-making and management of their working environments for more equitable and responsive workplaces.

Wagner Act

A foundational piece of labor legislation in the United States passed in 1935 that established the rights of workers to unionize and to engage in collective bargaining with employers.

Social Security Act

1935 law that created the Social Security system with provisions for a retirement pension, unemployment insurance, disability insurance, and public assistance (welfare).