A Wall Street Journal article in March 2019 stated that “more than half” of economists believed that a recession would occur by 2020. The article also noted that while home prices may drop during a recession, the decline may be small because a “persistent housing shortage should help cushion home price declines.”

a. If you were thinking of buying a house in the spring of 2019, briefly explain what effect on your decision this article would have. 

b. Suppose that you believe that the recession will be more severe than most economists expect. How will you take that belief into account in making your decision whether to buy a house?