00:02
So here, you want to talk about longer nitrate supply.
00:03
You should first define it, right? and this is what the economy is able to sustainably produce or to produce at potential perhaps, right? it defines that when our resources are being used in their normal fashions, how much we can produce, right? so if we're asking everyone to work an unsustainable amount of overtime, right, that's not what aggregate supply is measured, right? so let's go through each of these.
00:34
A, immigration.
00:40
Immigration increases long run aggregate supply, right? and the idea is that you have more workers so you can produce more, right? people are good at producing things.
00:54
And if we have more people, we can produce more stuff.
00:56
So immigration probably increases long run aggregate.
00:59
Apply.
01:01
B, a higher minimum wage.
01:06
Now, there are two approaches to this.
01:10
I might say nothing, right? so option one is nothing, right? because our potential is unaffected, right? a minimum wage does not change how many workers we have.
01:25
It does not change how many factories we have.
01:27
It does not change our ideas, our technology, our know -how, our skills, our learning, our training.
01:33
That actually goes into the production is effective.
01:37
But you could also argue for slightly lower...