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Economic Events Inuence on Economic Activity Analysis The world has experienced many major economic events that have inuenced supply, demand and economic equilibriums in the

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Economic Events Inuence on Economic Activity Analysis The world has experienced many major economic events that have inuenced supply, demand and economic equilibriums in the US economic activity. Supply is a schedule or curve showing the various amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specic period {McConnelL {1. R., Brue, S. L., & Flynn, S. M., 2018, p. 54]. Demand is a schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specic period of time (McConnell, {2. IL, Brue, S. L., 8: Flynn, S. M., 2018, p. 49]. Market equilibrium, also known as market clearing price, is the price where the intentions of buyers and sellers match [McConnelL C. R., Brue, 5. L., & Flynn, S. M., 2018, p. 57). In early 2006, housing prices in the real estate market peaked to an all time high. Later in 200? and into 2007, the housing prices began to decline. The burst in the housing bubble occurred due to the excessive risk-taking in the housing market. The supply of houses continued to increase, but the demand for homes decreased, causing the prices of homes to fall to an all time low in 2012. As the supply of homes increased, so did the prices, causing the demand to fall. Refer to the Figure A for an example. Following the housing bubble burst, the economy faced the great recession in 2008. The great recession's major causes were due to the international trade imbalances and lax lending standards contributing to high levels of household debt. The great recession resulted in slow economic growth. Businesses cut back on investments and reduced workforces, resulting in individuals not being able to honor their debts. The reduction of workforces was seen across the nation. Businesses were closing their doors or reducing their workforces as the need was no longer required. Businesses halted hiring new or additional employees. Businesses were letting go of staff instead. Unemployment numbers continued to

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