Let's say that Americans decide that home ownership isn't worth it anymore; instead, they all just move in with their parents. If Americans quit buying homes, this will cause AS to shift leftward due to a drop in consumption AS to shift leftward due to a drop in economic investment AD to shift leftward due to a drop in consumption AD to shift leftward due to a drop in economic investment

Let's say that Americans decide that home ownership isn't worth it anymore; instead, they all just move in with their parents. If Americans quit buying homes, this will cause AS to shift leftward due to a drop in consumption AS to shift leftward due to a drop in economic investment AD to shift leftward due to a drop in consumption AD to shift leftward due to a drop in economic investment

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Question

Let's say that Americans decide that home ownership isn't worth it anymore; instead, they all just
move in with their parents. If Americans quit buying homes, this will cause
AS to shift leftward due to a drop in consumption
AS to shift leftward due to a drop in economic investment
AD to shift leftward due to a drop in consumption
AD to shift leftward due to a drop in economic investment
is a venent policy ait illaue by a computer. Ine
interest rate, amount to buy or sell in open market operations, etc., are all determined by an
equation put into the computer.
This approach is
not supported by any American economists
based on discretion
O called rule-based policy
described by all listed options

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