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As the U.S. economy ventured into 2006, GDP growth was heights in general due to high consumption spending. Aggregate conduct was high and employment was high. These high employment levels and oil prices left the federal official Reserve worried about inflation as it appeared that change magnitude price levels were beginning to take hold. However, they restrained themselves from any interest rate hike as the housing market began to coolheaded off and oil prices began declining. Meanwhile, the hurricanes temporarily hurt both businesses and consumers in the third quart, provided production recovered as reconstructive memory and domestic energy output began to pick up tightlipped the end of the year. Residential construction was still booming as new inventory continued to be pushed onto the market, however demand had begun to slow down pushing housing down. Consumer confidence, a track indicator of economic performance, was high, moved a bit commence in part due to the hurricanes, but had begun to rebound in the latter part of 2006 coinciding with the rebound in the telephone line market and the decline in oil prices in that identical period. Further into 2006, the housing market collapse was beginning but was buffered by lower oil prices, which supported growth and guide to lower energy prices giving consumers more spending power.

stock-still with this increased spending power, consumption growth still slowed as home prices fell, consumer credit became less available, and consumer debt levels peaked. Business demand nerve impulse also slowed with a sharp decline in residential investment outweighing strong capital spending by businesses in structures and equipment. Government spending increased due the reconstruction efforts later on the hurricanes and due to the unfunded Medicare prescription drug program. The U.S. current taradiddle balance hit a record deficit of $856.7 gazillion as consumers were still spending and the value of the dollar remained high. However, a reversing trend began to take hold as the economy began to slow, the... If you indirect request to get a full essay, order it on our website: Ordercustompaper.com

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