Consider an economy that has two industries: agriculture and manufacturing. Assume short run for questions a-e. a. Which model do we use to analyze migration in the short run? b. According to the short run model you specified in part (a), what is the effect of immigration on wages? Explain. c. According to the short-run model of migration, how is the additional labor allocated between the two industries? d. What is the effect on the rental on capital and land? Explain. e. What is the effect on output in each industry? Explain.

Q&A Education