The Great Recession that started in 2007 was triggered by shocks in which of the following economic sectors?
A) gold market and stock market
B) international trade and foreign exchange markets
C) real estate and ﬁnancial markets
D) consumer and government spending

Question

Quizplus · Accepted Answer

The Great Recession was triggered by shocks in the real estate and financial markets, specifically the bursting of the housing bubble and the subprime mortgage crisis. These shocks led to a decline in the value of mortgage-backed securities and other financial assets, which in turn led to a widespread credit freeze and a severe contraction in lending and economic activity. The resulting recession lasted from 2007 to 2009 and was the worst economic downturn since the Great Depression.

The Great Recession That Started in 2007 Was Triggered by Shocks