Australia is a popular destination for asylum seeking refugees. Most of them do not speak English and do not have suitable skill sets to be employed in Australia. In addition, the Australian government needs to spend taxpayer money to provide basic social support services to the refugees.

(a) Apply the knowledge that you learned from the Economic growth theory and discuss how the influx of these refugees could impact the Australia economic prosperity (i.e, Economic growth). [Hint: Economic growth in this case refers to the growth in real GDP per capita.]

(b) Recommend a strategy or an instrument that the Australian government could use to achieve long-term economic growth when there is a large influx of refugees. Illustrate the effect of such an instrument on the per-worker output curve (Y/ L).