Which does NOT explain why the 1997-2006 housing boom increased aggregate demand?
A) The construction sector created new employment and higher wages.
B) Homeowners felt wealthier as they saw their homes rising in value every year.
C) Homeowners tended to spend more money and even borrow money,hoping that rising wealth from the home values will let them repay the money in the future.
D) During the boom,some builders were working 60 or 80 hours a week instead of 40.

Question

Quizplus · Accepted Answer

Working longer hours by builders does not directly increase aggregate demand as it only affects the supply side of the economy.

Which Does NOT Explain Why the 1997-2006 Housing Boom Increased