If the United States were to pass legislation that would make it harder for people to emigrate to the United States, this would cause
A) the short-run aggregate supply curve to become nearly vertical at all levels of output.
B) the short-run aggregate supply curve to shift to the left.
C) the short-run aggregate supply curve to become flatter.
D) the short-run aggregate supply curve to shift to the right.

Question

Quizplus · Accepted Answer

If it becomes more difficult for people to emigrate to the United States, the labor pool will shrink, leading to a shift to the left in the short-run aggregate supply curve. This is because there will be fewer workers available to produce goods and services, which will likely lead to higher wages and thus higher production costs.

If the United States Were to Pass Legislation That Would