Which of the following schematics most accurately represents economic fluctuations during a business cycle?

A) Shock -> Spending response by households and firms -> Multiplier effect -> Change in real GDP
B) Shock -> Multiplier effect -> Spending response by households and firms -> Change in real GDP
C) Shock -> Multiplier effect -> Change in real GDP -> Spending response by households and firms
D) Shock -> Change in real GDP -> Spending response by households and firms -> Multiplier effect


A

Economics

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Prior to the housing crisis of 2008, the federal government had been trying to ______ lending standards for low income people to ______ home ownership.

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Economics