Question

question 5 of 10

what was one effect of the great recession?

a. the unemployment rate rose to 10 percent.
b. banks offered more subprime mortgages.
c. auto industry businesses closed.
d. housing prices rose to normal levels.

Explanation:

Analyze the economic consequences of the Great Recession

The Great Recession (2007–2009) led to severe labor market contraction, causing the US unemployment rate to peak at 10.0% in October 2009.

Evaluate the incorrect options

• Option B describes a cause of the recession, not an effect.
• Option C is incorrect because major auto companies were bailed out and restructured rather than permanently closed.
• Option D is incorrect because housing prices collapsed during the crisis.

Answer:

• (A) The unemployment rate rose to 10 percent. (Correct answer)
• (B) Banks offered more subprime mortgages.
• (C) Auto industry businesses closed.
• (D) Housing prices rose to normal levels.