Explain the reasoning behind why employment could increase for domestic-born workers if immigrant workers become complementary resources rather than substitute resources

What will be an ideal response?

Immigrant workers may become a complementary resource to domestic-born workers and thus increase their employment. The migration of workers from low-wage nations lowers the wage rates in the receiving high-wage nations and reduces production cost, creating an output effect that raises the demand for certain domestic-born workers. For example, the large number of immigrants working in the agriculture industry lowers agricultural wages and reduces the costs of produce. That in turn increases the amount of produce available and increases the demand for domestic-born truck drivers to transport the goods to the markets that sell the produce.

Economics

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An expansionary monetary policy is likely to increase real output more than just temporarily:

a. when actual output currently is beyond the economy's long-run capacity. b. when the economy currently is at full employment c. when the economy currently operates at less than capacity. d. at virtually any output level.

Economics

Suppose that the consumer price index (CPI) was 160 in 2010 and 166 in 2011, inflation during 2011 was

a. zero; prices were stable. b. 3.8 percent. c. 6 percent. d. 66 percent.

Economics