Which of the Following Is One Reason for the Decline

question 77

Multiple Choice

Which of the following is one reason for the decline in aggregate demand that led to the recession of 2008-2009?

• A)falling oil prices
• B)increases in housing prices
• C)the U.S.financial crisis
• D)a decline in government spending
• E)a shrinking Canadian labour force

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Definitions:

Production Possibilities

The various combinations of goods and services that can be produced within an economy when all resources are fully utilized.

Capital Goods

Long-term assets used by businesses to produce goods and services, such as machinery and buildings.

Consumer Goods

Items produced for direct consumption by the end consumer.

Production Possibilities Curve

An illustrative chart that depicts the optimal mix of two goods or services that can be produced by an economy when it fully and efficiently employs all available resources.