there is movement up the labor-supply curve.
the labor-supply curve shifts to the left.
there is movement down the labor-supply curve.
the labor-supply curve shifts to the right.
Ceteris paribus, if additional immigrants come to the United States with marketable skills, and they decide to enter the labor market, then the labor-supply curve shifts to the right. Thus, the correct answer is "the labor-supply curve shifts to the right."
The labor supply curve represents the total number of workers who are willing and able to work at a particular wage rate.
When the number of immigrants with marketable skills increases and they enter the labor market, they will increase the number of people who are willing and able to work at a particular wage rate, thus, the labor supply curve shifts to the right.
The shift to the right indicates that there are more workers than before at each wage rate, allowing companies to hire workers for less money. Companies will increase the number of employees they employ as a result of this.
Additionally, this will lower the overall wage rate because the increased supply of workers will cause competition among the employees.
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a. True
b. False
b. 5, so a $200 increase in government spending increases aggregate supply by $1000.
c. 6/5, so a $200 increase in government spending increases aggregate demand by $240.
d. 6/5, so a $200 increase in government spending increases aggregate supply by $1200. 5 points
Answer: a. 6, so a $200 increase in government spending increases aggregate demand by $1200.
Explanation:
The multiplier, k is defined as the total effect of an injection on the economy. For example if the government decides to inject $200 through into the economy by carrying out new road constructions, the total amount this creates is more than $200.
The contractors who are assigned the projects spend some of the money on delivering the project and the remaining on investment, savings or consumption. This is also true for the employees of the company.
The formula to calculate the multiplier, k =
Therefore, k =
k = 6
The total injection in the economy = 6 x $200 = $1,200