In a change to immigration policy during 2012,"people younger than 30 who came to the United States before the age of 16,pose no criminal or security threat,and were successful students or served in the military can get a two-year deferral from deportation,Homeland Security Secretary Janet Napolitano said," according to CNN,06/16/2012. If many of these immigrates had previously been afraid to work,now as a result of being able to work legally,
A) the long-run aggregate supply curve shifts leftward and potential GDP decreases.
B) the short-run aggregate supply curve shifts rightward but potential GDP does not increase.
C) the long-run aggregate supply curve shifts rightward and potential GDP increases.
D) neither the short-run nor the long-run supply curve shifts.

Question

Quizplus · Accepted Answer

By allowing younger immigrants to work legally, the labor force will increase, and thus the long-run aggregate supply curve will shift rightward. This increase in potential GDP will lead to an increase in economic growth and productivity.

In a Change to Immigration Policy During 2012,"people Younger Than