Arguably,the increases in housing prices in 2005-2006 caused
A) a menu cost problem for producers.
B) a price confusion problem for producers.
C) a money illusion problem for producers.
D) future price uncertainty for producers.
E) a money illusion problem for consumers.

Question

Quizplus · Accepted Answer

The rapid increase in housing prices during 2005-2006 led to price confusion for producers, as it was difficult to determine whether the price changes were due to real demand or inflation, affecting their production and investment decisions.

Arguably,the Increases in Housing Prices in 2005-2006 Caused