Suppose the government cracks down on illegal immigration. How will this affect the demand and supply of labor
What will be an ideal response?
The reduction in immigration causes a decrease in the supply of labor (the curve shifts to the left). This results in a new equilibrium at a higher real wage and a lower level of employment. The quantity of labor demanded will also decrease, but the labor demand curve remains the same because none of the determinants of labor demand have changed.
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If the quantity of goods and services produced in the economy decreases,
A) real GDP would certainly increase. B) nominal GDP would certainly increase. C) it may be possible for nominal GDP to increase. D) it may be possible for real GDP to increase.
The high cost of advertising during the Super Bowl will
A) not affect the efficient level of output because advertising is a sunk cost. B) will affect the efficient level of output because profits will fall significantly. C) not affect the efficient level of output because advertising is a fixed cost. D) Not enough information given.