In the Mainstream View, the Severe Recession of 2007-2009 Was

Multiple Choice

In the mainstream view, the severe recession of 2007-2009 was caused by

A) an aggregate-supply shock, which caused the AS curve to shift left.
B) a financial crisis that caused a shrinkage in investment and consumption spending, thereby reducing aggregate demand.
C) monetary factors, specifically the excessive expansion of money supply brought about by the Federal Reserve, starting in the recession of 2001.
D) a huge and sudden drop in the velocity of money, causing a significant reduction in both nominal and real GDP.