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 immigrants 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

Allowing these previously undocumented immigrants to work legally increases the size of the labor force and the availability of labor, which shifts the long-run aggregate supply curve rightward. This results in an increase in potential GDP.

In a Change to Immigration Policy During 2012, "People Younger