If stricter immigration laws are imposed and many foreign workers in the United States are forced to go back to their home countries
A)the long-run aggregate supply curve will shift to the right.
B)the long-run aggregate supply curve will shift to the left.
C)we will move up along the long-run aggregate supply curve.
D)we will move down along the long-run aggregate supply curve.

Question

Quizplus · Accepted Answer

Stricter immigration laws would decrease the number of workers available in the economy, leading to a decrease in the long-run aggregate supply (LRAS) due to a decrease in potential output. This is represented as a leftward shift of the LRAS curve. Therefore, the correct choice is B.

If Stricter Immigration Laws Are Imposed and Many Foreign Workers