The 2007-2009 recession was caused by a(n)

Question

Quizplus · Accepted Answer

The 2007-2009 recession was primarily caused by a decrease in aggregate demand triggered by a financial crisis. The collapse of the housing market and the subprime mortgage crisis resulted in a widespread loss of confidence in financial markets, leading to a credit crunch and a sharp decline in spending by consumers and businesses. This decrease in spending ultimately led to a drop in aggregate demand and a recession.

The 2007-2009 Recession Was Caused by A(n)