6:31 PM ccsu.blackboard.com .ill AT&T; 55%. QUESTION 12 1points Save Answer One
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6:31 PM ccsu.blackboard.com .ill AT&T; 55%. QUESTION 12 1points Save Answer One of the major causes of the Great Recession, which started in 2008, was A. A conservative national government decreased government spending, which decreased aggregate demand OB. Banks used their depositors money to invest in the stock market, therefore when there was a stock market crash many people lost their savings, causing aggregate demand to fall. A crash in the housing market, as well as the financial markets, caused a drastic fall in both consumption and investment, causing aggregate demand to fall. OD. A rise in the price of oil, a key input, caused aggregate supply to fall. QUESTION 13 4 points Save Answer In the AS-AD model, which of the following events would cause a recession, (choose 4)? An increase in incomes. Fall in the rate of returns/profits most US firms expect to have in the future. A decrease in the interest rate. An increase in taxes. An increase in government spending. A change in foreign exchange rates so that US goods become more expensive for most other countries. Consumers desire to save less and spend An increase in interest rates. Click Save and Submit to sawe and submit. Click Save All Answers to save all answers Save All AnswersExplanation / Answer
Ans:
12) Option C
The great recession was caused due to fall of real estate market and the collapse of the financial sector in the economy. The fall in the prices of assets decreased the consumption and investment causing aggregate demand to fall.Inflation is also among the causes which contributed to recession.
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