Suppose New Immigration Legislation Permanently Limits the Number of People

question 101

Multiple Choice

Suppose new immigration legislation permanently limits the number of people who are able to enter the country through H1-B visas. Which type of shock would this legislation cause?

• A) Long-run supply shock
• B) Short-run supply shock
• C) Demand shock
• D) Change in price level

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Definitions:

Net Income

The total profit of a business after all expenses and taxes have been subtracted from total revenue.

Consumer Credit

A financial arrangement that allows individuals to purchase goods or services now and pay for them in the future.

Trade Credit

A form of credit extended by suppliers to their customers, allowing them to purchase goods or services and pay for them at a later date.

Insufficient Credit

A condition where an individual or entity lacks the necessary borrowing capacity due to limited credit history or poor credit ratings.