The two negative demand shocks that caused the Great Recession were:
A)declining housing prices and the 2008 financial panic.
B)declining housing prices and declining stock prices.
C)increasing oil prices and the 2008 financial panic.
D)increasing oil prices and declining stock prices.

Question

Quizplus · Accepted Answer

The Great Recession was primarily triggered by declining housing prices, which led to a financial panic in 2008, causing a significant negative demand shock.

The Two Negative Demand Shocks That Caused the Great Recession