Use the following graph to answer the next seven questions. The graph depicts an economy where aggregate demand and long-run aggregate supply (LRAS) have decreased, with no change in short-run aggregate supply (SRAS) .
-The decline in housing prices contributed to the Great Recession,as depicted in the graph,in that:
Definitions:
Convergent Stress
A tectonic plate stress that occurs when two plates move toward each other, potentially causing mountains or volcanoes.
Tensional Stress
Stress that occurs when forces act in opposite directions to stretch an object or material, common in geology and materials science.
Alternating Pressure
A method often used in medical beds and surfaces to prevent bedsores, where the pressure is periodically distributed and then relieved.
Displaced
Moved or forced out of a usual or proper place, often used to describe people who are forced to leave their homes.
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