Because of a temporary decline in economic activity.

In 2008, the entire world fell into a(n)

A reduction

B. recession

C. expansion

D. withdrawal

the answer is b recession because Starting in mid-2007, the global financial crisis quickly metamorphosed from the bursting of

the housing bubble in the US to the worst recession the world has witnessed for over six

decades. Through an in-depth review of the crisis in terms of the causes, consequences and

policy responses, this paper identifies four key messages. Firstly, contrary to widely-held

perceptions during the boom years before the crisis, the paper underscores that the global

economy was by no means as stable as suggested, while at the same time the majority of

the world’s poor had benefited insufficiently from stronger economic growth. Secondly, there

were complex and interlinked factors behind the emergence of the crisis in 2007, namely

loose monetary policy, global imbalances, misperception of risk and lax financial regulation.

Thirdly, beyond the aggregate picture of economic collapse and rising unemployment, this

paper stresses that the impact of the crisis is rather diverse, reflecting differences in initial

conditions, transmission channels and vulnerabilities of economies, along with the role of

government policy in mitigating the downturn. Fourthly, while the recovery phase has

commenced, a number of risks remain that could derail improvements in economies and

hinder efforts to ensure that the recovery is accompanied by job creation. These risks pertain

in particular to the challenges of dealing with public debt and continuing global imbalances.

1. seasonal

2. frictional unenployment

3. the number of the labor force multiplied by 100 and then subtract the number of unemployed.

4. 4%

5. an increase in prices