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Explain and graph on AD/AS the impact on Central American countries of people migrating to the...

Explain and graph on AD/AS the impact on Central American countries of people migrating to the U.S.

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Answer #1

the effect so Migrating to the U.S from Central Americal Countries is that, the labor force in the U.S will increases as the result , so therefore, increase in the potential output of the economy . but when the labor force increase in the country, the aggregate demand also increase as the migrants start the increase of the spending in the economy.

Therefore, Net effect of migration will lead to increase in the Real GDP but not in the price level.

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