from 2001 to 2005 there was a dramatic rise in the value of houses. if this rise made homeowners feel wealthier, then it would have shifted aggregate a. supply left. b. supply right. c. demand left. d. demand right.

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12-12-2022
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from 2001 to 2005 there was a dramatic rise in the value of houses. if this rise made homeowners feel wealthier, then it would have shifted aggregate a. supply left. b. supply right. c. demand left. d. demand right.

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shristiparmar1221 shristiparmar1221 · Answer 1 · 2022-12-15T07:03:01+01:00

This increase would have pushed aggregate demand to the right if it gave homeowners a sense of increased affluence. As a result, choice (D) is the best way to respond.

What is value?

Economic value is the value a person assigns to an economic good based on the advantages it provides for them. It is frequently estimated using the person's willingness to pay for the good, which is typically expressed in monetary units.

Contrary to popular belief, market value refers to the price people are willing to pay for a commodity or service, which may be more or lower than the economic worth that a given person assigns to it.

Hence, option (D) is the accurate one.

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