QUESTION 3 Suppose that there are two countries, A and B. Comparing the two countries, all but one factors affecting their labor markets are the same. Country A is relatively more open so that capital could flow in and out of Country A quicker than in and out of Country B. Imagine that there is a positive shock of labor supply due to the same sudden increase of unskilled immigrants into Country A and Country B. Assuming that unskilled immigrants are perfect substitutes of unskilled native workers, which of the following statements is correct? Capital will flow out of Country A and Country B after the shocks. In the short run, unskilled wage will decrease in both Country A and Country B. But wage recovers quicker in Country A than in Country B. In the short run, unskilled wage will increase in Country A but decrease in Country B. In the long run, Country A would experience an increase in unskilled wages while unskilled wage would not change in Country B