U. S. durable goods orders slump most in three years The Commerce Department reported that orders for U. S. durable goods fell in January by the most in three years. Orders for commercial aircraft and business equipment fell most. Machinery orders dropped 10.4 percent. Source: Bloomberg, February 29, 2012 What determines the decrease in aggregate demand resulting from a decrease in durable goods orders?

Which of the following describes one of the ways that the demographics of an area affect the price of housing in that area? a. when more people have children, their incomes tend to be higher and the housing prices are also higher. b. older people are more likely to stay in their houses, creating a seller's market that keeps prices low. c. an area with a lower population density won't have enough construction workers to build new houses quickly. d. an area with younger people will have a higher demand for rentals and a lower demand for buying.