If the economy receives an influx of new workers from immigration,
A)the long-run aggregate supply curve will shift to the right.
B)the long-run aggregate supply curve will shift to the left.
C)we will move up along the long-run aggregate supply curve.
D)we will move down along the long-run aggregate supply curve.
E)the aggregate demand curve will shift to the left.

Question

Quizplus · Accepted Answer

An influx of new workers from immigration will increase the size of the potential workforce, which will increase the economy's potential output in the long run. This means that the long-run aggregate supply (LRAS) curve will shift to the right. This shift will result in an increase in both real GDP and potential GDP.

If the Economy Receives an Influx of New Workers from Immigration