The graph below suggests a housing price ________ followed by a(n)________ in aggregate demand.

Question

Quizplus · Accepted Answer

The graph shows a steep increase in housing prices followed by a sharp decrease, indicating a housing bubble. This bubble would have occurred because of an initial increase in aggregate demand, possibly due to easy access to credit, but eventually, the demand could not keep up with the supply causing a decline in housing prices.

The Graph Below Suggests a Housing Price ________ Followed by A(n)________

The Graph Below Suggests a Housing Price Followed by A(n)