A Notable Macroeconomic Effect of the Bursting U

question 46

Multiple Choice

A notable macroeconomic effect of the bursting U.S. housing bubble in 2007 was a

• A)modest reduction in Real GDP growth of one percentage point.
• B)marked expansion in the construction sector of the economy.
• C)dramatic contraction of aggregate consumption spending.
• D)all of the options are correct.

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Definitions:

NDP

Net Domestic Product; it calculates the total value of all goods and services produced within a country in a specific period minus depreciation.

Intermediate Product

Goods that are used in the production process to make other goods, rather than being bought by consumers.

National Income Accountants

Specialists who compile national accounts, a system of accounts that provides detailed information on the economic activities and output of a nation, such as GDP, national income, and expenditure.

Material Well-being

A measure of the quantity and quality of goods and services available to an individual or society.