Chapter 36, Problem 5MCQ

To determine

The correct option that best describes the 23 years prior to the Great Recession

Answer to Problem 5MCQ

From the available options, the correct option is a period of consensus building among economists.

Explanation of Solution

23 years prior to the Great Recession, the market general was not at the position of decline but it happens during the time of Great Recession as there was a period of high inflation when the prices were increased in economy. The rate of unemployment was also high during recession as the economy faced financial crisis which generated disagreements between different macroeconomists while they gave opinion about right level of quantitative information. But almost 2 decades prior to the Great Recession, it was a period when economists were in general agreements or consensus related to different matters.

Therefore, the correct option is c (a period of consensus building among economists.) and all other options are incorrect.

Economics Concept Introduction

Introduction: Macroeconomics is the branch of entire economics that focuses on wide area of general economic issues that are related or interacted with economies. Great recession was the time period from 2007 to 2009 when general economy was declined and GDP was adjusted for inflation.