26 Jul WHAT EFFECT WOULD SUCH POLICY HAVE ON REAL WAGE W/P AND RENTAL RATE OF CAPITAL R/P IN THE LONG RUN?
Imagine that your country starts a new visa program that would strongly promote migration of skilled Show more Imagine that your country starts a new visa program that would strongly promote migration of skilled workers from abroad(exogenous increase in labor which yields higher marginal product of labor overall) What effect would such policy have on real wage W/P and rental rate of capital R/P in the long run? Explain ONLY using graphs. If the net effect is ambiguous based on the information given provide reasoning on why that is the case. Show less
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