Which of the Following Is NOT a Reason for the Weak

question 21

Multiple Choice

Which of the following is NOT a reason for the weak recovery following the 2007-2009 recession?

• A) recessions started by financial crises are almost always severe
• B) the decline in the automobile industry appeared to be structural
• C) the collapse of the housing market was long lived
• D) the recession was caused by a decline in short-run aggregate supply

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Definitions:

Indirect Method

A method used to prepare the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.

Term Deposit

A bank deposit with a fixed term and interest rate, where the money must remain deposited for a specified duration, incurring penalties for early withdrawal.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

Insurance Proceeds

The money received by an insured party from an insurance company to cover a claim.