For each of the scenarios, please decide whether there will be an increase or decrease in short-run aggregate supply or if there will be no change. 1a. Changes in the healthcare market cause employers to pay significantly more for health insurance they provide employees. 1b. The price of lumber, a commodity, rises drastically due to the effect of heavy winter weather in the American Northwest, where much of the world's lumber is grown. 1c. The production of a new type of blade for their combine harvesters, a tractor used to harvest crops, has allowed wheat farmers, like Herbert, to increase productivity by 40%.
For each of the scenarios, please decide whether there will be an increase or decrease in short-run aggregate supply or if there will be no change. 1a. Changes in the healthcare market cause employers to pay significantly more for health insurance they provide employees. 1b. The price of lumber, a commodity, rises drastically due to the effect of heavy winter weather in the American Northwest, where much of the world's lumber is grown. 1c. The production of a new type of blade for their combine harvesters, a tractor used to harvest crops, has allowed wheat farmers, like Herbert, to increase productivity by 40%.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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For each of the scenarios, please decide whether there will be an increase or decrease in short-run
1a. Changes in the healthcare market cause employers to pay significantly more for health insurance they provide employees.
1b. The price of lumber, a commodity, rises drastically due to the effect of heavy winter weather in the American Northwest, where much of the world's lumber is grown.
1c. The production of a new type of blade for their combine harvesters, a tractor used to harvest crops, has allowed wheat farmers, like Herbert, to increase productivity by 40%.
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