Economic fluctuations in the United States during the 2007-09 period are best explained by shifts of the inflation adjustment line.

Question

Quizplus · Accepted Answer

Economic fluctuations during the 2007-09 period were primarily caused by the global financial crisis, which had effects on various sectors of the economy such as housing, banking, and credit markets. While inflation was a concern during this time, it was not the main driver of the economic downturn. Therefore, shifts of the inflation adjustment line alone cannot fully explain the fluctuations.

Economic Fluctuations in the United States During the 2007-09 Period