Which of the Following Events Led to the Crisis in Macroeconomics

question 39

Multiple Choice

Which of the following events led to the crisis in macroeconomics and to the development of rational expectations theory?

• A)the Great Depression
• B)the stock market crash of 1987
• C)the stock market speculative bubble of the late 1990s
• D)stagflation in the 1970s
• E) large budget deficits in the 1980s

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Definitions:

Forced

Compelled or coerced action or decision, often against one's will.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, reflecting the company's brand, customer base, and other non-physical assets.

Restriction

A rule or condition that limits or controls someone's actions or a particular activity.

Business Elsewhere

The decision by a customer to take their business to a competitor or alternative provider, usually due to dissatisfaction.