If the structural stagnation hypothesis is true, what happened to the economy in the early 2000s that made it prone to a financial crisis?
A)Too-expansionary demand-side policies
B)Too-expansionary supply-side policies
C)Increased trade restrictions
D)Slowing technological advance

Question

Quizplus · Accepted Answer

The structural stagnation hypothesis suggests that too-expansionary demand-side policies in the early 2000s led to imbalances and vulnerabilities, making the economy prone to a financial crisis.

If the Structural Stagnation Hypothesis Is True, What Happened to the Economy