Suppose Housing Values Fall During a Recession

question 136

Multiple Choice

Suppose housing values fall during a recession. In the short run,

• A) the price level will fall as we move down the aggregate demand curve.
• B) the price level will fall as we move down the short-run aggregate supply curve.
• C) short-run aggregate supply will decrease and the price level will fall.
• D) short-run aggregate supply will increase because wages will fall.
• E) aggregate demand will increase because the demand for houses will increase.

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Definitions:

Market Development

A strategic business growth technique that involves selling existing products in new markets or new geographical areas.

Existing Products

Goods or services that are currently available to consumers from a business.

Value Delivery Network

The collaboration between a company, its suppliers, and its distributors to produce and deliver products to the final customer efficiently.

Socio-cultural Factors

Elements that influence one's lifestyle and preferences, including family, education, religion, and social class, which marketers use to segment and target audiences.