Great recession in 2008 experienced the burst of housing market
bubble, which led financial market crisis.
You were hired as a chief economic advisor in a major corporate,
and they would like to know more about macroeconomic conditions in
2008.
Your responded one of followings;
Aggregate demand fell in 2008. Here are the reasons;
Unemployment and lower income, resulting from a drop in consumer
spending and investment, meant governments took in less in tax
revenue. This caused government spending to...