What Made the Recession of 2007-2009 Different Than Any Other

question 50

Multiple Choice

What made the recession of 2007-2009 different than any other recession since the Great Depression?

• A)the government did not implement a fiscal stimulus
• B)the Fed failed to reduce interest rates
• C)it was accompanied by a financial crisis
• D)the impact was primarily limited to the financial sector

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Definitions:

Income Elasticity

A measure of how much the demand for a good changes in response to a change in consumer income.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time.

Cross-Price Elasticity

The responsiveness level of the quantity of a product needed when there's a fluctuation in the price of another product.

Cross-Price Elasticity

An assessment of how changes in the price of one good affect the demand for another good.