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Unformatted text preview: economic recoveries but has remained lackluster this time. 5. Use aggregate supply and demand to illustrate the impact of the housing market on our economy. People not buying new houses will cause investments to go down, also causing consumption to go down because people will spend money on things. This will cause aggregate demand to shift down. Aggregate supply will stay the same because with no one buying new homes, there will not be anymore built, also the new homes will not be knocked down so there will not be an increase or decrease in demand....
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- Fall '11
- Supply And Demand, housing market, Commerce Department, new home sales