Final answer:
In 2015, the U.S. was recovering from the "Great Recession," which was caused by a financial crisis resulting from the collapse of the housing bubble and issues within the financial markets. Recovery efforts included the American Recovery and Reinvestment Act of 2009, which provided stimulus through spending and tax cuts to stabilize the economy.
Step-by-step explanation:
In 2015, the United States continued its recovery from the "Great Recession," arguably the worst economic downturn since the stock market collapse in 1929 and the Great Depression that ensued. The correct answer to the question is C) Financial crisis. The term Great Recession refers to the severe economic downturn that began in 2007 and ended in 2009, characterized by significant declines in the housing market, a crisis in the financial markets, high unemployment rates, and falling GDP. The United States responded to the economic crisis with aggressive fiscal and monetary policy measures, such as the American Recovery and Reinvestment Act of 2009, which provided a stimulus package.
The housing bubble and the crisis in the financial markets were major contributors to the Great Recession. These economic challenges were exacerbated by the creation of complex financial products like mortgage-backed securities and credit default swaps, which, once they failed, led to widespread financial instability. To remedy the situation, the U.S. government implemented bailouts and legislation to stabilize the housing market, support domestic industries, and restore financial market stability.