Assume that an economy is in equilibrium when the arrival of ...

[Lobcity]

Assume that an economy is in equilibrium when the arrival of immigrants causes an increase in the supply of labor.
 
  Once the economy has adjusted to its new equilibrium, and assuming that the supply of capital remains unchanged, which of the following has decreased? A) the share of capital income in national income
  B) the share of labor income in national income
  C) national income
  D) the rental price of capital
  E) none of the above

Question 2

Refer to Figure 16.1. A decrease in the real price of capital goods is best represented by a movement from
 
  A) point A to point B.
  B) point B to point A.
  C) point A to point C.
  D) point C to point A.

[vkodali]

Answer to Question 1

E

Answer to Question 2

D