A sudden increase in immigration would be considered a(n):
A) short-run supply shock.
B) long-run supply shock.
C) interest-rate shock.
D) A change in immigration would not influence aggregate demand or supply.

Question

Quizplus · Accepted Answer

A sudden increase in immigration would affect the long-run supply by increasing the labor force and potentially leading to a shift in the production possibilities frontier (PPF) and potential GDP. It may also have some short-run effects on the labor market, but the long-run impacts would be more significant.

A Sudden Increase in Immigration Would Be Considered A(n)