Finally, local construction workers will be hired to work on the project, and it is expected...

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Finally, local construction workers will be hired to work on the project, and it is expected that 20,000 hours of labor will be needed for this project. This is a large change in the local demand for construction workers, and it drives the gross wage up from $15.00 per hour to $16.00/hr. As a result, half of the 20,000 hours hired for the project will come from supply expansion and half will come from demand displacement. In addition $2.00 of that amount is withheld for federal income taxes, and $1.00 is withheld for state income taxes. Finally, local construction workers will be hired to work on the project, and it is expected that 20,000 hours of labor will be needed for this project. This is a large change in the local demand for construction workers, and it drives the gross wage up from $15.00 per hour to $16.00/hr. As a result, half of the 20,000 hours hired for the project will come from supply expansion and half will come from demand displacement. In addition $2.00 of that amount is withheld for federal income taxes, and $1.00 is withheld for state income taxes.