Suppose that the U.S. cracks down on illegal immigrants and returns millions of workers to their home countries. Graphically show and explain what happens to U.S. potential GDP, employment, and the real wage rate.
Suppose that the U.S. cracks down on illegal immigrants and returns millions of workers to their home countries. Graphically show and explain what happens to U.S. potential GDP, employment, and the real wage rate.
Chapter1: Making Economics Decisions
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4. Suppose that the U.S. cracks down on illegal immigrants and returns millions of workers to their home countries. Graphically show and explain what happens to U.S. potential
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Gross Domestic Product serves as a gauge of our economy’s overall size and health. GDP is measured by the total market value (gross) of all the U.S. (domestic) goods and the services produced (product) in a given year.
When compared with the prior periods, GDP tells us whether the economy is expanding by producing more of the goods and services, or contracting due to less output. It also tells us how the U.S. is performing relative to the other economies around the world.
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