2. Consider two countries A and B. Suppose a civil war breaks out in count A...

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2. Consider two countries A and B. Suppose a civil war breaks out in count A creating a large increase in immigrants from A to B. What is the effect on employment and wages of country B in the short run? How does this event affect the immigration, wages and native employment of country B in the long run? (Note that r is constant in the long run and assume that immigrants and natives are substitutes) 2. Consider two countries A and B. Suppose a civil war breaks out in count A creating a large increase in immigrants from A to B. What is the effect on employment and wages of country B in the short run? How does this event affect the immigration, wages and native employment of country B in the long run? (Note that r is constant in the long run and assume that immigrants and natives are substitutes)

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In the short run the large increase in immigrants from country A to country B may negatively affect ... View the full answer