The financial crisis of 2008 and 2009 is best characterized as a _____.

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The financial crisis of 2008 and 2009 is best characterized as a recession, which is a significant decline in economic activity that lasts for more than a few months. The crisis was marked by a sharp decline in GDP, high unemployment, and a deep contraction in credit and lending. A depression is a more severe and prolonged economic downturn, while hyperdeflation and business troughs are not terms used to describe economic crises. A bubble refers to a situation in which prices for certain assets become detached from their intrinsic values, leading to a speculative frenzy and eventual collapse. While the financial crisis was partly caused by a housing bubble, it is not necessarily the best characterization of the crisis as a whole.

The Financial Crisis of 2008 and 2009 Is Best Characterized