A major cause of the Great Recession was:
a. The liberalization of U.S. banking regulations that led to excessive risk taking.
b.Excessive foreign exchange speculation.
c. Contractionary fiscal policies.
d. Excessive money creation by the Federal Reserve immediately before and during the downturn.
e. None of the above.
Question 2
Which of the following will not cause the aggregate supply curve to fall?
a. A reduction in a nation's level of productivity.
b. An increase in input prices.
c. An increase in the value of the domestic currency.
d. Natural disasters.
