The Financial Crisis of 2007-2009 Was Primarily the Result of

question 2

Multiple Choice

The financial crisis of 2007-2009 was primarily the result of

• A) the bursting of the stock market bubble.
• B) the bursting of the housing market bubble.
• C) excessive tax rates.
• D) inflation fighting by the Federal Reserve.

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Definitions:

GDP Deflator

A yardstick for the cost measures of all new, nationally manufactured, final goods and services in an economy.

Real GDP

The measure of a country's economic output adjusted for price changes, providing a more accurate view of an economy's size and growth rate.

GDP

Gross Domestic Product is the total value, either in market or monetary terms, of all the consumable goods and services produced within a country's area in a determined period.

Real GDP

Real GDP refers to the total economic output of a country, adjusted for price changes or inflation, representing the actual value of goods and services produced over a specific period.