The Housing Crisis Has Some Roots in Inflation Because

question 99

Multiple Choice

The housing crisis has some roots in inflation because

• A) new houses were new goods and services and the consumer price index (CPI)didn't measure them.
• B) builders confused inflation with an increase in demand and hence overbuilt,which was a price confusion problem.
• C) there were menu costs associated with higher housing prices.
• D) money illusion occurred when builders thought that real prices were rising.
• E) money illusion occurred when housing buyers thought real wages were rising.

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Definitions:

Geographical Arbitrage

The practice of taking advantage of price differences between geographic locations by buying low in one area and selling high in another.

Post-Fordist Organizations

Refer to a shift in organizational structures emphasizing flexibility, innovation, and decentralized decision-making, moving away from mass production and rigid hierarchies characteristic of the Fordist era.

Corporate Control

The governance and oversight mechanisms in place within corporations to direct and manage their operations.

Immaterial Labor

Labor that does not produce things per se but that produces the informational and cultural content of commodities.