The number of immigrant workers in the US has dramatically increased in the past three years. Please use the IS-LM model framework to analyze the impact of increasing immigrant workers in the short run and in the long run. For the short-run, there should be one graph for the labor market, one for the goods market, and one for the asset market, and one IS-LM graph showing how FE/IS/LM curves shift. For the long-run, you should clearly indicate how price would change, and how this change affects the asset market equilibrium (usage of the asset market graph), and the all three markets together (usage of the IS-LM graph). Please identify both the short-term and long-term impact on the real interest rate and the output level. You should also explain in words on how different outcome variables are affected in the short term and in the long term. Short-Run Graphs: Labor Market (Figure 1): Shift in Labor Supply (NS) Goods Market (Figure 2): Shift in Savings Curve (Sd) Asset Market (Figure 3): LM Curve (No Shift) IS-LM Graph (Figure 4): Shift in IS Curve (Right) Long-Run Graphs: Asset Market (Figure 5): LM Curve Shift (Left) IS-LM Graph (Figure 6): IS Curve (Right) and LM Curve (Left) Shift
The number of immigrant workers in the US has dramatically increased in the past three years. Please use the IS-LM model framework to analyze the impact of increasing immigrant workers in the short run and in the long run. For the short-run, there should be one graph for the labor market, one for the goods market, and one for the asset market, and one IS-LM graph showing how FE/IS/LM curves shift. For the long-run, you should clearly indicate how price would change, and how this change affects the asset market equilibrium (usage of the asset market graph), and the all three markets together (usage of the IS-LM graph). Please identify both the short-term and long-term impact on the real interest rate and the output level. You should also explain in words on how different outcome variables are affected in the short term and in the long term. Short-Run Graphs: Labor Market (Figure 1): Shift in Labor Supply (NS) Goods Market (Figure 2): Shift in Savings Curve (Sd) Asset Market (Figure 3): LM Curve (No Shift) IS-LM Graph (Figure 4): Shift in IS Curve (Right) Long-Run Graphs: Asset Market (Figure 5): LM Curve Shift (Left) IS-LM Graph (Figure 6): IS Curve (Right) and LM Curve (Left) Shift
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The number of immigrant workers in the US has dramatically increased in the past three years. Please use the IS-LM model framework to analyze the impact of increasing immigrant workers in the short run and in the long run.
For the short-run, there should be one graph for the labor market, one for the goods market, and one for the asset market, and one IS-LM graph showing how FE/IS/LM curves shift.
For the long-run, you should clearly indicate how price would change, and how this change affects the asset
Please identify both the short-term and long-term impact on the real interest rate and the output level. You should also explain in words on how different outcome variables are affected in the short term and in the long term.
Short-Run Graphs:
- Labor Market (Figure 1): Shift in Labor Supply (NS)
- Goods Market (Figure 2): Shift in Savings Curve (Sd)
- Asset Market (Figure 3): LM Curve (No Shift)
- IS-LM Graph (Figure 4): Shift in IS Curve (Right)
Long-Run Graphs:
- Asset Market (Figure 5): LM Curve Shift (Left)
- IS-LM Graph (Figure 6): IS Curve (Right) and LM Curve (Left) Shift
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