NZ immigration at 10-year high New Zealand immigration has risen to a 10-year high. The Reserve Bank said net migration is boosting demand for housing and consumer spending, and is seen as an inflationary pressure.

Source: Sydney Morning Herald, 21 March 2014 Think about immigration to New Zealand:

How does immigration influence New Zealand’s aggregate supply and potential GDP?

How does immigration influence New Zealand’s aggregate demand?

How does immigration lead to inflationary pressure?

What type of inflation is created?