Recall the Application about the factors involved in causing recessions, and the causes of recessions in the United States from 1893 to 1990 to answer the following question(s).
-According to this Application, the recession in 1991 was caused by
A) increasing oil prices which resulted in a decrease in aggregate supply.
B) the government cutting back on aggregate demand to reduce inflation.
C) an decrease in aggregate supply resulting from U.S. bank collapses.
D) massive immigration from Europe to the United States.

Question

Quizplus · Accepted Answer

The Application states that the government cut back on aggregate demand to reduce inflation, which caused the recession in 1991.

Recall the Application About the Factors Involved in Causing Recessions