Expansion and contraction
General economy
Basic information about the crisis
Basic information about the crisis pt. 2
The aftermath
100

What is a period of consumption?

When the spending on goods and services rises/economy improves

100

What happens when an economy overheats?


the industry is working at full capacity because of the demand being greater than the supply

100

when did the crisis start?

February 27, 2007 with the fall of stock prices in China


100

Where did it originate?

The United Estates

100

What aftermath did the great recession of 2008 cause? 

Housing prices increased, then fell, due to the subprime mortgage crisis. ...

Banks went into crisis. ...

The stock market plummeted, erasing wealth. ...

Troubled Assets Relief Program (TARP) offered assistance. ...

The American Recovery and Reinvestment Act (ARRA) fueled growth.

200

What Happens after a period of consumption?

The Economy Falls

Economic Crisis

200

Why would the government reduce the amount of economic activity by raising taxes?


to cool down the economy

200

Who is to blame for it?

The main culprit was financial regulation and supervision

200

Which financial instruments commonly came to be called Toxic Assets?

Mortgage-Back Securities

200

What was the consequence in terms of employment?

Doubling the unemployment rates in some countries and decreasing the amount of jobs available

300

How is it called a long-lasting recession?

Deppresion/Slump

300

Name some banks that collapsed because of this crisis

Douglas national bank

Hume Bank

ANB Financial NA

First Integrity Bank

300

What was the name given to this crisis

The Great Recession


300

Did the financial system collapse?

yes, the stock market declined unstabilizing interest rates 

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