Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

i have no idea about the questions could you explain than in more details thanks! Question 2 [3 marks total]. The last several decades has

i have no idea about the questions could you explain than in more details thanks!

image text in transcribed
Question 2 [3 marks total]. The last several decades has seen a signicant amount of human capital entering Australia from foreign nations ranging from low-skilled to high skilled labour and seen as an important factor of the rate of invention and innovation within an economy. Imposing restrictions on skilled immigration policy may deteriorate the overall level of human capital given it is an integral part of production, and hence output. COVID- 19 has also shown the restrictive effects of the movement of human capital across countries. Assume there is no scal policy response from the government for the following questions. a. Explain and illustrate the short-run effect of the Australian Government imposing a strict ban on human capital entering Australia, by signicantly reducing the number of skilled immigrants entering the nation over the next 20 years on macroeconomic equilibrium using the AD-AS model. [0.5 marks] b. Explain and illustrate the adjustment process to back to long-run equilibrium based on the following: i. Self-correcting mechanism (i.e., with no policy response). [1 mark] ii. Active stabilisation response (i.e., with policy response). [1.5 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume I

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

16th Canadian edition

978-1260305821

Students also viewed these Economics questions

Question

What is the most common constraint faced by merchandisers?

Answered: 1 week ago