Question

This Question: 2 pts 38 of 64 (18 complete) Real wage rate 2000 dollars per hour Suppose that the United States cracks down on ilegal immigrants and returns milions of workers to their home countries Draw a labor supply curve and a labor demand curve for the United States. Label the curve LS, and LD Draw a point at the bonum quantity of labor and the equilibrium real wage rate Label 1 Now Sucose the United Serums millions ofeganigrant workers to their home countries Draw and label curve that shows the effect of this return of workers Draw a point at the new e m quantity of labor and equitum real wage rate Label 2 The effect of the United States returning millions of workers to their countries of origin is the U.S. PF and in potential ODP OA a downward shot, no charge OB. a movement down along a decrease oc. a downward to a decrease OD. a movement down wong, no charge 100 200 300 O SO Labor bilions of hours per year) >>> Draw only the objects specified in the question.

Answer 1

Some the regulation > Real Lo wage nate LDO Labor billions of " hoving Equilibrium occurs where Do and so intersects. At equilibrium, meal wage sale = wi and Quantity of labor = 61. Now suppose the USA metumms millions of illegal immigrants workers to their home countries. This will & supply of Labor, shifting the labon Supply curve ceftward from Lso to Ls, New equilibrium occurs at Point 2. peal LSI LSO wage wale 1217 - K Labon, The effect is a movement down along the uns production function (Pf does not shift) and a decrease in potential GDP. Potential GDP is the point on the PF determined by the equilibrium quantity of rabor. As now equilibrium Labor quantity has decreased, so potential GDP r. Answer.option B