Which of the following is NOT a reason for the weak recovery following the 2007-2009 recession?
A) Recessions started by financial crises are almost always severe.
B) The decline in the automobile industry appeared to be structural.
C) The collapse of the housing market was long lived.
D) The recession was caused by a decline in short-run aggregate supply.

Question

Quizplus · Accepted Answer

The recession was not caused by a decline in short-run aggregate supply, therefore it is not a reason for the weak recovery. The other options are all valid reasons for the slow recovery.

Which of the Following Is NOT a Reason for the Weak