Consider an economy that abides by the standard classical model specifications. Suppose policymakers have decided to allow a large number of new immigrants to enter the country and join the workforce. In the labor market, we would expect to see

A. a leftward shift in labor demand

B. a rightward shift in labor demand 

C. a leftward shift in labor supply 

D. a rightward shift in labor supply 

For the production function, we would expect P 

• Y = AKαN1−α P 

• Y = AKαN1−α

A. an upward shift in the production function

B. a downward shift in the production function 

C. no shift, only move up the production function 

D. no shift,

Only move down the production function In the AS/AD space, we would expect to see 

A. higher prices and higher output. 

B. lower prices and lower output 

C. higher prices and lower output 

D. lower prices and higher output 

Which of the following would be false?

A. Private savings increase.

B. Public savings increase. 

C. Equilibrium investment increases

. D. Equilibrium savings increase.

E. None of the above. 

Which of the following are true?

A. Real wages and interest rates rise. 

B. Real wages and interest rates fall.

C. Real wages rise and interest rates fall. 

D. Real wages fall and interest rates rise.

Which of the following are true? 

A. Tax revenue increases due to higher income. 

B. Higher prices shift aggregate supply to the right. 

C. Lower prices shift aggregate demand to the right.

D. Consumption falls due to higher interest rates. 

E. None of the above.