According to graph1 why and how a decrease in the blue line could cause a decrease in the orange line? Explain with two sentences. Graph2 displays a sharper decrease on the black line than the green line at the beginning of the recession. Why? 200 190 180 170 160 150 140 Graph 1: 130 120 2003:01 2003:02 2003:03 2003:04 2004:01 2004:02 2004:Q3 2004:04 2005:01 2005:02 2005:03 2005:04 Recession TO:900Z 2006:02 2006:03 2006:04 2007:01 2007:02 2007:03 2007:04 2008:01 2008:02 2008:03 2008:04 2009:01 2009:02 2009:0Q3 2009:04 2010:01 S&P/Case-Shiller U.S. National Home Price Index (left) Personal Consumption Expenditures (right) 10500 10000 9500 9000 8500 8000 7500 C According to graph1 why and how a decrease in the blue line could cause adecrease in the orange line? Explain with two sentences. Graph2 displays asharper decrease on the black line than the green line at the beginning of therecession. Why?200190180170160150Graph 1:140130120TO-E0022003.022003:0310:00022004.0120/10002004 02310:1002to coorRecession2005 072005 032005 04to 90022006.022006.032006.042007 012007.022007:03VO LOOK2008.012008 02S&P/Case-Shiller US National Home Price bides @efmtaPersonal Consumption Expenditures (night)ED-900010-90022009 012009:02ED:6007ED:OtorNO:6000105001000095009000150080007500

Based on Graph 1, a decrease in the blue line (S&P/Case-Shiller U.S. National Home Price Index)…

Answered: According to graph1 why and how a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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According to graph1 why and how a decrease in the blue line could cause a decrease in the orange line? Explain with two sentences. Graph2 displays a sharper decrease on the black line than the green line at the beginning of the recession. Why? 200 190 180 170 160 150 140 Graph 1: 130 120 2003:01 2003:02 2003:03 2003:04 2004:01 2004:02 2004:Q3 2004:04 2005:01 2005:02 2005:03 2005:04 Recession TO:900Z 2006:02 2006:03 2006:04 2007:01 2007:02 2007:03 2007:04 2008:01 2008:02 2008:03 2008:04 2009:01 2009:02 2009:0Q3 2009:04 2010:01 S&P/Case-Shiller U.S. National Home Price Index (left) Personal Consumption Expenditures (right) 10500 10000 9500 9000 8500 8000 7500 C

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