Based on the complete model of housing, the real price of housing over the long run: Should not show any trend, since the long-run determinants do not showa trend Should exhibit a continuous rise as incomes rise and land is less available Should exhibit a decline as housing investment as faction of GDP continues to add to the stock of housing Should exhibit an upward trend as real interest decline

Based on the complete model of housing, the real price of housing over the long run: Should not show any trend, since the long-run determinants do not showa trend Should exhibit a continuous rise as incomes rise and land is less available Should exhibit a decline as housing investment as faction of GDP continues to add to the stock of housing Should exhibit an upward trend as real interest decline

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 2TY

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