The Decrease in Short-Run Aggregate Supply During the Great Recession

question 139

Multiple Choice

The decrease in short-run aggregate supply during the Great Recession was caused by:

• A) excessive consumer debt.
• B) miscalculation of the risk of subprime mortgages.
• C) the worldwide glut of savings.
• D) businesses reducing their production capacity by closing plants and laying off workers.

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Definitions:

Self-Efficacy

The conviction a person holds about their ability to undertake behaviors that result in specific achievements.

Transtheoretical Model

A theory of behavioral change that assesses an individual's readiness to act on a new healthier behavior and provides strategies to guide the individual through the stages of change.

Health-Related Model

A framework or theory that outlines the impact of health behaviors, decisions, and environmental factors on an individual's well-being and health outcomes.

Behavioral Theory

A framework suggesting that behavior is learned through interactions with the environment, often emphasizing the role of reinforcement and punishment.