Question

Based on what you have learned, choose each response below that correctly describes America’s economic situation at the time of the 2008 election.

Check all of the boxes that apply.

a balanced federal budget

banks in crisis

economic growth

growing unemployment

falling home prices

Answer 1

Correct choices:
- banks in crisis
- growing unemployment
- falling home prices

Why: By the 2008 election the U.S. was in the financial crisis (bank failures and bailouts), unemployment was rising as the economy entered a recession, and home prices were falling after the housing-bubble collapse. It did not have a balanced federal budget, and it was not experiencing economic growth.