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Consider a one-off change in government policy that immediately and permanently increases the level of the labour force in an economy (such as a more

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Consider a one-off change in government policy that immediately and permanently increases the level of the labour force in an economy (such as a more generous immigration policy). In particular, suppose it rises permanently from N to N: There is a one-off drop in K/N, that's happening because N rises. The economy starts growing rapidly. Assuming that the saving rate of the immigrants is the same as the savings rate of the old citizens. What is the long run effect on output per worker? Select one: O a. It decreases O b. It stays unchanged oc. It increases

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