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

Question

Quizplus · Accepted Answer

The weak recovery following the 2007-2009 recession was not caused by a decline in short-run aggregate supply. The recession was primarily caused by the bursting of the housing bubble and the subsequent financial crisis. The other three options are valid reasons for the weak recovery.

Which of the Following Is NOT a Reason for the Weak