Week four discussion question - Chapter 32 introduces students to the aggregate demand-aggregate supply model of the economy. The model is designed to demonstrate macroeconomic equilibrium at the current level of real output/real GDP, unemployment and price level (inflation). Two factors which influence aggregate demand are the consumer wealth effect and household indebtedness. According to economic theory, significant swings in the stock market increase or decrease consumer wealth, increasing or decreasing aggregate demand. Likewise, significant increases or decreases in the value of homes, increases or decreases aggregate demand. Significant decreases in aggregate demand cause a recession characterized by a falling level of output/real GDP and higher unemployment. 56% of Americans own stocks. 64% of Americans own a home. Is it fair the 44% of Americans who do not own stocks and the 36% of Americans who do not own their homes suffer the consequences of a recession caused by a significant decline in the stock market and/or a significant decline in home values?