Question: Consider two sectors in the long run: a high-tech sector and a low-tech sector. In the long run, capital can move freely between sectors but

Consider two sectors in the long run: a high-tech sector and a low-tech sector. In the long run, capital can move freely between sectors but labor cannot move across sectors. There is no technological change. Suppose there is an increase in H1B visas that increases the immigration of labor into only the high-tech sector. Use the long run model to discuss the effects of this type of immigration on the real wage, the real rental price paid to capital, and total output produced in both sectors. (10 points)

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