The cost of hiring workers includes not only payments made directly to workers, that is, wages, but payments made on behalf of workers as well, such as contributions by employers to pension plans and to health-care insurance for employees. How would a decrease in the cost of employer-provided health insurance affect the economy? Using Figure 7.9, “An Increase in Health Insurance Premiums Paid by Firms” as a guide, draw a graph to illustrate your answer.

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