Which of the Following Is One Reason for the Decline

question 196

Multiple Choice

Which of the following is one reason for the decline in aggregate demand that led to the recession of 2007-2009?

• A)falling oil prices
• B)increases in housing prices
• C)the financial crisis
• D)a decline in government spending

---

Definitions:

Domestic Surplus

The extra quantity of a good that producers are willing to supply over what is demanded by domestic consumers, often measured when analyzing the impact of international trade.

Tariffs

Taxes on imported goods, implemented by a government to protect domestic industries from foreign competition or to generate revenue.

Textiles

Materials made from fibers, filaments, threads, or yarns, suitable for use in the production of fabrics and other goods.

Price Of Labor

Refers to the wage rate, or the amount of compensation workers receive in exchange for their labor.