Multiple Choice
What impact did the change in housing prices during 2002 to 2005 have within the framework of the AD/AS model?
A) Declining housing prices reduced aggregate demand shifting AD leftward.
B) Rising housing prices increased aggregate demand shifting AD rightward.
C) Rising housing prices led to increased construction shifting LRAS leftward.
D) Declining housing prices caused SRAS to shift leftward.
Correct Answer:
Verified
Correct Answer:
Verified
Q26: Suppose this year's inflation rate is 4
Q27: How would aggregate demand change if foreign
Q28: Figure 10-18 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9063/.jpg" alt="Figure 10-18
Q29: The short-run effects of a favorable supply
Q30: Suppose the economy is initially in long-run
Q32: If a country's currency depreciates, which of
Q33: Use the figure below to answer the
Q34: When an economy is in a recession,<br>A)
Q35: Use the figure below to answer the
Q36: The usual results of an adverse supply