During the recession of 2007-2009 in the United States,________ relative to potential GDP.
A)business fixed investment spending rose and net export spending declined
B)consumption spending rose and residential construction spending declined
C)federal government purchases rose and changes in business inventories declined
D)net export spending rose and consumption spending declined

Question

Quizplus · Accepted Answer

During the 2007-2009 recession, net export spending rose as the dollar weakened, making U.S. goods cheaper abroad, while consumption spending declined due to reduced consumer confidence and higher unemployment.

During the Recession of 2007-2009 in the United States,________ Relative