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trends/forces exhibited in the graphs below

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Comment on the trends/forces exhibited in the graphs below, including your observations on the law of supply/demand, the impacts of inflation, and the boundary conditions for cyclical change in rents.

List four variables influencing the location of major sports franchises in 2005, compared with 1950. Briefly indicate how these variables also affect the real estate sector of the economy.

The Taylor Rule is a guide to forecasting the Fed Funds rate. Please translate the formula below "into English." Given current conditions in GDP and inflation, what is the probable outlook for short-term interest rates for the coming year.

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The law of supply/demand is observed.

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1. Comment on the trends/forces exhibited in the graphs below, including your observations on the law of supply/demand, the impacts of inflation, and the boundary conditions for cyclical change in rents (2 - 3 sentences on each topic will suffice).

I can't speak to the boundary conditions for cyclical change. In the supply and demand context we can see a clear pattern here. Notice that Construction usually starts and grows rapidly as rents are rising and stops a year or two after rents have peaked and began their decline. This is typical in real estate. A real estate boom is followed by a sharp decrease in new construction and usually a lot of unused space. At about the time new construction stops vacancies are half way through their expansion. Similarly rents are about half way through their decline. With the extra construction there is an excess of supply. Vacancies continue to rise and rents continue to fall until vacancies start declining. As vacancies fall further property is scarce and as a result rents begin to rise again. This rise in rents ...

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