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T/F/U. Immigration increases both ALS and ALD. Draw a diagram(s) consistent with your answer

T/F/U. Immigration increases both ALS and ALD. Draw a diagram(s) consistent with your answer

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Answer #1

True.

See it this way-Immigration increases population of a country.Rise in population means rise in aggregate demand.To meet the increase in demand,firms have to increase their total production.To produce more they will demand more labour.So,demand for labour would rise.

Supply of labour also rises because out of the immigrating population,a percentage would be of skilled labour.Immigration causes the number of skilled labour to rise.And therefore,supply for labour rises.

Both the ALS and ALD curve would shift to the right.

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