MINDTAP ECONOMICS FOR GWARTNEY/STROUP/S
16th Edition
ISBN: 9781305582026
Author: Macpherson
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 4, Problem 1CQ
To determine
Explain how the increases in demand for housing will affect the wages and employment
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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MINDTAP ECONOMICS FOR GWARTNEY/STROUP/S
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