Economics: Private and Public Choice (MindTap Course List)
15th Edition
ISBN: 9781285453538
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 4, Problem 1CQ
To determine
Explain how the increases in
Expert Solution & Answer
Explanation of Solution
An increase in the demand for housing leads to an increase in the demand for goods and services. To increase the production output, the resource and the services of carpenters, electricians, and plumbers are needed. As a result, this increases the wage rage. Thus, the increase in the demand for housing will lead to higher wages and increase the employment rate.
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Chapter 4 Solutions
Economics: Private and Public Choice (MindTap Course List)
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