Why is it more expensive to acquire a new house in an urban area than in a rural area if the costs of labor and building materials are the same?

A quick glance to the demand side might reveal a consumer preference for urban living, for a variety of reasons we need not go into here. On the supply side, we would find the price of land is much higher in urban areas due to opportunity cost considerations associated with land use. The higher priced land is a necessary input for constructing a house, thus implying a higher price for the final product it helps produce.

Economics

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An decrease in the velocity of money for given levels of income and the interest rate would shift the

a. LM curve up. b. IS curve up. b. IS curve down. c. LM curve down.

Economics

Refer to the data. NDP is:



Answer the question on the basis of the following data. All figures are in billions of dollars.
A.  $370.
B.  $402.
C.  $392.
D.  $467.

Economics