If the economy receives an influx of new workers from immigration
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

With an influx of new workers from immigration, there will be an increase in the labor force which leads to an increase in potential output. This shift in potential output will cause a rightward shift of the long-run aggregate supply curve.

If the Economy Receives an Influx of New Workers from Immigration