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Inventia has 1 million workers. Suppose 50,000 workers migrate from a neighboring country to join ...

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Inventia has 1 million workers. Suppose 50,000 workers migrate from a neighboring country to join ...

Inventia has 1 million workers. Suppose 50,000 workers migrate from a neighboring country to join Inventia's workforce. Which of the following will happen in this case if Inventia's physical capital stock remains unchanged?

▸ The relationship between output and physical capital stock becomes negative.

▸ The marginal contribution of labor to Inventia's output will fall.

▸ The total efficiency units of labor in the economy will decrease.

▸ The country's income per worker will increase.

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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