Question

Patrick just landed a job working for a major online gaming company in Silicon Valley. In a lot of ways, this is his dream job come true - the chance to work for a company that makes gaming software and live in California at the same time. As his plane lands at San Jose International, he pictures a snazzy apartment with a palm tree right outside the front door. A few hours later, as he meets a property manager of a large apartment complex, his heart sinks. The price of apartments is out of sight! Back at the hotel, he logs on to the Bureau of Labor Statistics to try to get a better picture of why the cost of housing is so high in this region of the U.S. Which factors may be causing the rise in the price of housing?
A. Low Unemployment rate and increasing GDP
B. High consumer's marginal index and low PPI
C. Low CPI and high state tax rate
D. Decreasing Disruptive Technologies Index and high unemployment

Answer 1

Answer:

A. Low Unemployment rate and increasing GDP

Explanation:

Increasing prices of houses usually is due because the economy is growing. To put it simply, if everything goes well in economy, prices of houses tend to rise. In this case we see that the prices are high. So, looking at the options, we see option A: Low unemployment rate and increasing GDP, two things that makes economy go well; increasing GDP which means economic growth and low unemployment rate, which is also another goal of a good economy.