Question

9. How would each of the following affect the current level of full-employment output? Explain and illustrate your answer with a graph.

a)      A large number of immigrants enter the country.

b)      Energy supplies become depleted.

c)       New teaching techniques improve the educational performance of high school seniors.

d)      Home prices increase significantly in an unexpectedly hot real estate market.
e)      Originally an unskilled worker, Joe acquires skills that give him access to a higher-paying job. Assume that his preferences about leisure are not affected by the change in jobs.

f)       A major virus hits China.

Answer 1