How does increased immigration affect the labor market? How would the equilibrium wage and the equilibrium quantity of labor be affected?
Increased immigration increases the supply of labor. With the increased supply, the equilibrium wage would decrease and the equilibrium quantity of labor would increase.
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The fiscal policy planner's job is made easier because full-employment GDP can be accurately measured
a. True b. False Indicate whether the statement is true or false
Which is true of a single price monopoly firm?
A. Its supply curve is equal to its marginal cost function. B. It creates more welfare loss to society than a perfect price discriminating monopolist. C. An increased profits tax will lower the quantity the firm will produce. D. Its shutdown point is where ATC = price.
In 2008, the Fed utilized expansionary monetary policy, which was made
A. more effective as banks held more excess reserves. B. less effective as banks held more excess reserves. C. more effective as banks held less excess reserves. D. less effective as banks held less excess reserves.
Which one of the following is an example of discretionary fiscal policy used to correct a recessionary gap?
A. an increase in the money supply by the Federal Reserve B. a decrease in government expenditures approved by Congress C. a tax decrease passed into law by Congress D. an agreement among major banks to raise interest rates