The recessionary expenditure gap associated with the recession of 2007-2009 resulted from
A)the government's attempt to control hyperinflation.
B)a major increase in personal and corporate taxes.
C)a rapid decline in investment spending.
D)a rapid increase in imports resulting from large tariff reductions.

Question

Quizplus · Accepted Answer

The recessionary expenditure gap during the 2007-2009 recession was primarily due to a rapid decline in investment spending, as businesses cut back on investments in response to the financial crisis and economic uncertainty.

The Recessionary Expenditure Gap Associated with the Recession of 2007-2009