In the Classical Model,a Decrease in Immigration Would

question 22

Multiple Choice

In the classical model,a decrease in immigration would

• A)decrease labor supply,increase the real wage,and decrease output.
• B)increase labor supply and the real wage,and decrease output.
• C)increase labor demand and the real wage,and increase output.
• D)reduce real wages and reduce output.

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Definitions:

Deflation

A drop in the overall pricing of goods and services, typically signaling a shrinkage in the money or credit available in the economy.

National Income

The total value of all the goods and services produced by a country’s economy in a specific period, including income from foreign investments.

Gross Investment Expenditures

The total amount spent on new capital assets, before accounting for depreciation.

Government Expenditures

The spending by the government sector on goods and services, including public services and public investment.