(Last Word) Which of the following statements best represents economistsâ€™ predictions about recovery from the Great Recession?
A)Recovery would occur quickly because of continued rapid advances in technology.
B)Recovery would take longer than usual because the recession was preceded by a credit bubble.
C)Recovery of output growth would be rapid, but employment growth would be slow.
D)Bursting of the credit bubble would facilitate recovery by creating greater price flexibility.

Question

Quizplus · Accepted Answer

The Great Recession was preceded by a credit bubble, which typically leads to a slower recovery due to the need to repair balance sheets and restore credit conditions.

(Last Word) Which of the Following Statements Best Represents Economistsâ€™