From 2000 to 2005,housing Prices Increased,on Average,by Over 40

question 73

Multiple Choice

From 2000 to 2005,housing prices increased,on average,by over 40%. This run up in prices was caused by

• A) speculators.
• B) an increase in subprime loans, which increased demand for new and existing houses.
• C) both A and B.
• D) None of the above are correct.

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Definitions:

Price Level

The price level is an index that measures the average prices of goods and services in an economy over a period of time.

Real GDP

measures the value of all goods and services produced by an economy in a specific period, adjusted for inflation.

Government Expenditures

The total amount of money the government spends, including spending on goods, services, and transfer payments.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and resulting in significant military and civilian casualties.