Does this involve inflation and economic efficiency

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In the Adirondacks there used to be a number of paper mills, every one of them has closed down. However, a group of entrepreneurs is going to refit one of the old paper mills and reopen it. They are planning on employing 5,000 workers in a town of 10,000 people. Why would you expect to observe low unemployment, rising wage rates, and rising prices for locally produced goods such as housing and services. What is the causal connection in this case between the town’s unemployment rate and changes in prices? does this involve inflation, economic efficiency?

Reference no: EM131101336

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