Explanations About What Caused the Great Recession Differ Sharply Among

question 49

Multiple Choice

Explanations about what caused the Great Recession differ sharply among economists. The so-called Minsky Explanation involves the following factors, except:

• A) A massive euphoric bubble in housing prices that eventually burst
• B) A huge negative demand shock in the economy
• C) Flexible average price level in the economy
• D) Excessive access to home-mortgage loans

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Definitions:

Private Sector

The part of the economy owned and operated by individuals and companies for profit, as opposed to the public sector operated by the government.

Picketing

The act of demonstrating or protesting, often by workers, outside a place of employment to voice grievances or demands.

Statutes

Laws established by a legislative body governing behavior and setting forth the legal responsibilities and duties of parties.

Free Contractual Nature

Describes the principle that parties are free to negotiate and enter into contracts without undue interference or restrictions.