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Explain what factors led to the 2006 decrease in housing prices causing a reduction in aggregate demand.
Operating Income
The profit realized from a business's core operations, excluding deductions of interest and taxes.
Variable Cost
A cost that changes in proportion to the level of activity or volume of output in a business.
Capacity
In finance, the ability of an individual or organization to repay a loan or meet financial obligations.
Fixed Costs
Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.
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