Suppose the government requires businesses to provide dental, mental health, and various other health benefits to their workers. As a result of this policy, the price level greatly increases. Which of these diagrams best shows this scenario?

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bluedolphin12 bluedolphin12

18-09-2022
Social Studies

Answered

Suppose the government requires businesses to provide dental, mental health, and various other health benefits to their workers. As a result of this policy, the price level greatly increases. Which of these diagrams best shows this scenario?

Answer :

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Parrain Parrain · Answer 1 · 2022-09-21T07:10:31-04:00

The diagram that best shows the scenario of the price level increasing as a result of the government requirement that businesses should provide benefits is Diagram E.

Which diagram shows the scenario?

When the government required that businesses should provide health benefits to their workers, this would make businesses to hire less workers.

This leads to a fall in production as less workers are producing. The supply curve would then shift upwards which would lead to a higher price level as shown in Diagram E.

Find out more on aggregate supply and demand curves at https://brainly.com/question/2486606

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