Between the Third and Fourth Quarters of 2006, the Housing

question 7

Essay

Between the third and fourth quarters of 2006, the housing bubble burst in the United States. Using the AS/AD framework to discuss the impact of this macroeconomic event, begin and end in the long run.

---

Definitions:

Social Categorisation

The process by which individuals classify others into groups based on shared characteristics.

Social Creativity

Group-based behavioural strategies that improve social identity but do not directly attack the dominant group’s position.

Social Change

The transformation over time of cultural values, norms, and social structures, leading to significant shifts in society.

Social Competition

Group-based behavioural strategies that improve social identity by directly confronting the dominant group’s position in society.