In: Economics
Suppose your economy resides at long‐run potential output but concerns arise that the birth rate is too low to support retired workers on fixed social security payments. Suppose further that technology growth is insignificant. If population is allowed to rise through immigration, what happens to the long‐run aggregate supply curve, prices and interest rates? What could happen to the LR supply curve, prices and interest rates if immigration remained restricted?
If population is allowed to rise through immigration, what happens to the long‐run aggregate supply curve, prices and interest rates?
What could happen to the LR supply curve, prices and interest rates if immigration remained restricted?