Question

Suppose that the immigration restrictions imposed by the Trump Administration have the effect of reducing the supply of labor in the United States. Using the production function, labor market, and product market graphs of the classical model, please show the effects of restricting immigration. Describe how the variables of the model change.

Answer 1

Reduction in the supply of labour in the united states the Panel W the clasical model defidz la labout 1 market allere equilibriemy accouns at hoit. ut Eli A fall in the labour Supply will shift A, Me the Labour supply arus leftwards to and thre wages in creace and labour employed falls of gorroton با عا aboo1 Pavel (8) srepresent the foroduction fenekon in the account of labour employed from a tool will reduce the level of output froduced from oy, to oye au puh. y l Al Al Parel (c) of the diadane dofiate the product market whose apegate - Supply write is vertically fall in the anconet of out put froduced will shift the as come left words to as 1, and quailly of output produced will fall in the economy Scanned with CamScanner Yz 4 )