Answer: There will be an increase in economic growth as more output will be supplied at lower prices.
Explanation:
When twice as many workers are allowed to move to the United States, this will lead to a surplus in the labor market. The surplus in the labor market will lead to the reduction in wages as the workers will compete with one another.
The competition will lead to decrease in wage rates and the business costs decrease as well. This will in turn, lead to the reduction in the price level and an increase in the quantity supplied. The rightward shift will cause movement along the aggregate demand curve, as there will be more output to be supplied at a lower price level.
