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Hi I was wondering if you could help me answer these questions?
New-home sales fell to an annual pace of 250,000 in February, an all-time low in records dating to 1963, the Commerce Department reported March 23. Existing-home sales dropped to a 4.88 million annualized pace in February, down 2.8 percent from a year earlier, the National Association of Realtors said, while the median price of existing homes fell to $156,100, the lowest since February 2002. (Bloomberg, March 29, 2011)
Where do sales of previously owned homes appear in the circular flow of expenditure and income? Explain how a fall in sales of previously owned homes affects real GDP.
Next question: is from question 3 of the attachment….
a. In which pair (or pairs) of countries is it easiest to compare the standard of living? In which pair (or pairs) is it more difficult? Explain why. b. Do the differences in GDP per person rank correctly the standard of living in these countries? What additional information would we need to be able to make an accurate assessment of the relative standard of living in these four countries?
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