(Consider This) The 2007-2009 recession began with reductions in investment and consumption spending, precipitated by a financial crisis.This explanation for the recession is consistent with
A)the monetarist view of macroeconomic instability.
B)the rational expectations view of macroeconomic instability.
C)the mainstream view of macroeconomic instability.
D)none of these views of macroeconomic instability.

Question

Quizplus · Accepted Answer

The mainstream view of macroeconomic instability attributes recessions to declines in aggregate demand, often triggered by reductions in investment and consumption, which aligns with the 2007-2009 recession's causes.

(Consider This) the 2007-2009 Recession Began with Reductions in Investment