During the early 2000s, the Case-Shiller U.S. Home Price Index, a measure of average home prices, rose continuously until it peaked in March 2006. From March 2006 to May 2009, the index lost 32% of its value. Meanwhile, the stock market experienced similar ups and downs. From March 2003 to October 2007, the Standard and Poor's 500 (S&P 500) stock index, a broad measure of stock market prices, almost doubled, from 800.73 to a high of 1,565.15. From that time until March 2009, the index fell by almost 60%, to a low of 676.53. How do you think the movements in home prices both influenced the growth in real GDP during the first half of the decade and added to the concern about maintain- ing consumer spending after the collapse in the hous- ing market that began in 2006? To what extent did the movements in the stock market hurt or help consume spending?
During the early 2000s, the Case-Shiller U.S. Home Price Index, a measure of average home prices, rose continuously until it peaked in March 2006. From March 2006 to May 2009, the index lost 32% of its value. Meanwhile, the stock market experienced similar ups and downs. From March 2003 to October 2007, the Standard and Poor's 500 (S&P 500) stock index, a broad measure of stock market prices, almost doubled, from 800.73 to a high of 1,565.15. From that time until March 2009, the index fell by almost 60%, to a low of 676.53. How do you think the movements in home prices both influenced the growth in real GDP during the first half of the decade and added to the concern about maintain- ing consumer spending after the collapse in the hous- ing market that began in 2006? To what extent did the movements in the stock market hurt or help consume spending?
Chapter1: Making Economics Decisions
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Transcribed Image Text:6/ During the early 2000s, the Case-Shiller U.S. Home
Price Index, a measure of average home prices, rose
continuously until it peaked in March 2006. From
March 2006 to May 2009, the index lost 32% of its value.
Meanwhile, the stock market experienced similar ups
and downs. From March 2003 to October 2007, the
Standard and Poor's 500 (S&P 500) stock index, a broad
measure of stock market prices, almost doubled, from
800.73 to a high of 1,565.15. From that time until March
2009, the index fell by almost 60%, to a low of 676.53.
How do you think the movements in home prices both
influenced the growth in real GDP during the first half
of the decade and added to the concern about maintain-
ing consumer spending after the collapse in the hous-
ing market that began in 2006? To what extent did the
movements in the stock market hurt or help consumer
spending?
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