Applying neoclassical theory to the housing market, ________ cause a decrease in the desired stock of houses
A) higher expected household incomes
B) higher rates of household formation
C) increases in the expected relative price of housing
D) tighter constraints on mortgage financing
D
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When the price of a good decreases,
A) supply increases. B) supply decreases. C) quantity supplied increases. D) quantity supplied decreases.
If both the production of goods and services increase and prices rise, then the change in nominal GDP
A) definitely understates the change in production. B) definitely accurately reflect the change in production. C) definitely overstates the change in production. D) either understates or might accurately reflect the change in production. E) More information is needed to determine how the change in nominal GDP compares to the change in production.