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Q: Why do economists assert that economic recessions are actually beneficial to many homebuyers?
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Why do economists assert that economic recessions are actually beneficail to many homebuyers?

Economists assert that economic recessions are actually beneficial to many homebuyers because both home prices and mortgage interest rates tend to be lowest during recession.


Why do economists measure the cost of things when opportunity cost is what you actually are considering we when decide whether or not to purchase something?

it is easier for economists to measure "cost" than "opportunity cost"(because people's tastes are different and changeable)


What are two reasons why economists have a reputation for giving conflicting advice to policymakers?

Economists often give conflicting advice to policy makers for two basic reasons: 1) economists may disagree about the validity of alternative positive theories about how the world works and/or 2) economists may have different values and therefore different normative views about what policy should try to accomplish


How did the great depression affect economists beliefs about the macroeconomy?

Instead of assuming that the macroeconomy would automatically recover from a recession, economists began to consider the possibility that modern market economies could fall into prolonged contractions and that government assistance would be necessary to pull them out.


What is the rationale for government involvement in the market economy?

Prior to government involvement in the free market recessions occurred as they always will in cycles. What goes up must come down type of thing. These recessions were pretty short lived and lasted a year or so and corrected. But around the turn of the 20th century politicians began to place the blame for these recessions on the political party in power. By doing so when the economy improved while they were in power they could take credit for it. That is when the problems really began. The free maket will correct itself and it will do it fairly quickly but when the politicians began to try to "make" it correct itself by dabbling with the monetary system (such as creating the fed) it started taking longer and longer for the market to fix itself. Still today, the people want and expect their government to save them from these recessions and there is political power to be gained from it so politicians rationalize that they have better ideas than the people who actually work in the money market and business and continue to try and "fix" the system.

Related questions

Why do economists assert that economic recessions are actually beneficail to many homebuyers?

Economists assert that economic recessions are actually beneficial to many homebuyers because both home prices and mortgage interest rates tend to be lowest during recession.


Is beneficial an adverb?

No, it is an adjective. The adverb form is beneficially.


Why do economists measure the cost of things when opportunity cost is what you actually are considering we when decide whether or not to purchase something?

it is easier for economists to measure "cost" than "opportunity cost"(because people's tastes are different and changeable)


Are window awnings actually beneficial or is it more for decoration?

its a bit of both. however, if you door is recessed in from your front windows they are beneficial when raining.


How can stereotype be beneficial to the used car dealer?

There are a number of stereotypes that are actually beneficial to the used car dealer. One such stereotype is that they are fast and efficient.


Is getting into the automotive business risky in this economy?

The automotive business is always competitive, and risky to start a business in. However, economic recessions are actually the best time to start a new business in most industries.


What are the dangers of consuming expired Milo energy drinks?

It is not dangerous and actually beneficial! Drink your Milo!!!


Is zam zam water contaminate?

No. It is actually very beneficial and contains vitamins and minerals no other thing has.


How does pepper effect plant growth?

Pepper actually repels insects that eat the plant and is beneficial in that way


Is it weird that your boyfriend is a tarus?

Definitely not, depending on what star sign you are and whether you believe in such guff, it may actually be beneficial.


Is MBA needed after 2 years in market?

Not actually needed unless the particular position requires it, but very beneficial to have.


Does spaying inhibit growth?

No, spaying does not in any way inhibit growth and is actually very beneficial to the dog's health.