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President Trump has been campaigning for stricter immigration laws and for the deportation of millions of undocumented workers in the US.
President Trump has been campaigning for stricter immigration laws and for the deportation of millions of
undocumented workers in the US. These policies can impact an estimated 10 million undocumented workers
currently living in the US. Assume that Trump is successful in his deportation policy and as a result, the
US economy experiences an immediate and permanent decrease in the level of the labor force. In particular,
suppose it decreases permanently from L¯ to L¯0. Assuming the economy starts in its initial steady state, uset he Solow model to explain what happens to the economy over time and in the long run. Comment on whath appens to the level and growth rate of per capita GDP.
