The long-run aggregate supply curve would shift right if immigration from abroad
A)increased or Congress made a substantial increase in the minimum wage.
B)decreased or Congress abolished the minimum wage.
C)increased or Congress abolished the minimum wage.
D)decreased or Congress made a substantial increase in the minimum wage.

Question

Quizplus · Accepted Answer

Immigration from abroad would increase the labor force, leading to a shift of the long-run aggregate supply curve to the right. Abolishing the minimum wage would increase the incentive for firms to hire additional workers, also leading to a rightward shift of the long-run aggregate supply curve. Therefore, option C is the correct choice. The other options would either decrease the labor force or create wage pressures that would limit the shift of the long-run aggregate supply curve to the right.

The Long-Run Aggregate Supply Curve Would Shift Right If Immigration