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The Business Cycle

Question 4 • * HSA 26-27 Economics

During 2008 and 2009, the US economy experienced a .

Answer
A
peak
B
an expansion
C
a recession

Explanation

The U.S. economy contracted during 2008 and 2009, with falling production and rising unemployment. This downturn is known as the Great Recession, so the correct choice is a recession; an expansion would mean the economy was growing.

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