When the ratio of a housing price index to the GDP deflator is rising, this means that housing prices are rising faster than the overall price level.

Question

Quizplus · Accepted Answer

The housing price index measures the price level of housing, while the GDP deflator measures the price level of all goods and services produced in the economy. When the ratio of the housing price index to the GDP deflator is rising, it indicates that housing prices are increasing at a faster rate than the overall price level, meaning that the cost of housing is becoming relatively more expensive compared to other goods and services in the economy.

When the Ratio of a Housing Price Index to the GDP