For each of the following events, explain the short-run and long-run effects on output and the price level in Pakistan.

(a)Pakistan experiences a wave of immigration (1 Mark, Maximum 150 words)
(b)Parliament of Pakistan raises the minimum wage to Rs.21, 000 per month. (1 Mark, Maximum 150 words)
(c)Vivo Mobile invents a new and more powerful computer chip. (1 Mark, Maximum 150 words)
(d)A severe Flood damages factories along the Indus River.  (1 Mark, Maximum 150 words)
(e)State Bank of Pakistan increases the policy rate (Interest rate

Answer rating: 100% (QA)

1 A higher proportion of immigrants increases the total supply of labor The supply of labor from S to S changes accordingly as the number of persons ready to work on a certain wage grows for all salar... View the full answer