Question: Suppose that the classical model is appropriate for a country that has suddenly experienced an influx of immigrants who possess a wide variety of employable

Suppose that the classical model is appropriate for a country that has suddenly experienced an influx of immigrants who possess a wide variety of employable skills and who have reputations for saving relatively large portions of their incomes, compared with native-born residents, at any given interest rate. Evaluate the effects of this event on the following:

a. Current equilibrium employment

b. Current equilibrium real GDP

c. The current equilibrium interest rate

d. Current equilibrium investment

e. Future equilibrium real GDP

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