If, due to a recession, workers begin to leave Canada to search for temporary work in other countries until the recession has ended, this will
A)shift the short-run aggregate supply curve of the other country to the left.
B)shift the short-run aggregate supply curve of the other country to the right.
C)move the other country's economy up along a stationary short-run aggregate supply curve.
D)move the other country's economy down along a stationary short-run aggregate supply curve.
E)shift the other country's long-run aggregate supply to the left.

Question

Quizplus · Accepted Answer

When workers from Canada move to another country for temporary work, they increase the labor force in that country. This increase in labor can lead to an increase in production capacity, which shifts the short-run aggregate supply (SRAS) curve to the right, indicating an increase in the total output that businesses in the country can produce at any given price level.

If, Due to a Recession, Workers Begin to Leave Canada