The figure describes the effect of immigration on unemployment in the labour market. The labour market equilibrium is at A and C before and after the influx of immigration, respectively. Based on this figure, which of the following statements is correct?

Question

Accepted Answer

All incumbent workers are no worse off in the new equilibrium.

Answer

The unemployment rate is unchanged in the new equilibrium.

Answer

Firms claim a higher markup in the new equilibrium.

Answer

All incumbent workers are unaffected while the labour market adjusts.

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The figure describes the effect of immigration on unemployment in the labour mar...

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