contestada

As the recession of the early 2000s wound down in the last quarter of 2001, gdp growth was slow at first because?

a. consumer savings also decreased.
b. inventories, which had built up during the recession, decreased.
c. tax rates increased.
d. inventories of consumer goods increased.

Respuesta :

B. During the recession, inventories had grown, which had led to a decrease.

In an effort to shield the economy from an overvalued stock market, the Federal Reserve increased interest rates repeatedly between 2000 and 2001.

Using the stock market as an informal benchmark, a recession would have begun in March 2000, when the NASDAQ plummeted following the dot-com bubble's demise.

In the 2000s, the country experienced a weak job market. According to the EPI, employment only increased by 0.6% during this time, which was insufficient to keep up with the population's growth. Accordingly, there were 1.5 million additional jobless laborers toward the finish of the business cycle than toward the start.

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