Instructions: For each of the following, illustrate and explain the changes to AD and AS,

output, price levels and employment that will occur in the short-run and in the long-run. Assume

that wages are "sticky" in the short-run and "flexible" in the long-run.

7. Looser immigration laws lead to an increase in the labor force, putting downward

pressure on wages.

Explain the short-run and long-run consequences of the change described:

The United States Economy PL LRAS SRAS Pe AD Yfe GDP