AS:
"Real income goes up, because housing prices fell"
You mean the cost of housing, not house prices, or?
Rents are related to real rates. Another factor is the housing bubble that crowds out renting in favour of ownership and depresses rents.
There's a couple other questionables. Business output growth has surpassed GDP growth for a long time; the fall in hours looks pretty big; the problem of measuring service prices deflators; and our old friend, hedonic deflators.
"Real income goes up, because housing prices fell"
You mean the cost of housing, not house prices, or?
Rents are related to real rates. Another factor is the housing bubble that crowds out renting in favour of ownership and depresses rents.
There's a couple other questionables. Business output growth has surpassed GDP growth for a long time; the fall in hours looks pretty big; the problem of measuring service prices deflators; and our old friend, hedonic deflators.
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