The values of existing homes are not included in a nation's AD, yet their compression in 2008

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The values of existing homes are not included in a nation's AD, yet their compression in 2008 caused a decline in AD during the Great Recession. Explain the cause and effect relationship.

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Managing in a Global Economy Demystifying International Macroeconomics

ISBN: 978-1285055428

2nd edition

Authors: John E. Marthinsen

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Question Posted: Mar 09, 2016 06:52 AM

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The values of existing homes are not included in a nation's AD, yet their compression in 2008

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Declining real estate prices caused wealth to fall and with it so did consumptio...View the full answer

Managing in a Global Economy Demystifying International Macroeconomics

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