In the classical model,a decrease in immigration would
A)decrease labor supply,increase the real wage,and decrease output.
B)increase labor supply and the real wage,and decrease output.
C)increase labor demand and the real wage,and increase output.
D)reduce real wages and reduce output.

Question

Quizplus · Accepted Answer

In the classical model, a decrease in immigration would decrease labor supply, which would increase the real wage due to the decrease in the supply of labor. However, as the real wage increases, firms would reduce their demand for labor, leading to a decrease in output. Therefore, the correct choice is A.

In the Classical Model,a Decrease in Immigration Would