Using the aggregate supply and demand model analyze the long-run effect of a less open immigration policy in the U.S. on the following:

Using the aggregate supply and demand model analyze the long-run effect of a less open immigration policy in the U.S. on the following:

• The real wage rate
• The level of employment
• The rate of inflation
• Economic growth
Discuss the pros and cons of such a policy from a short-run versus a long-run perspective.

During his first term in office President Ronald Reagan advocated and pushed through Congress what he called supply-side tax cuts. These tax cuts primarily involved major reductions in the top marginal rates. President Reagan claimed that these tax cuts would:

• Create non-inflationary growth
• Reduce the government deficit
Did the tax cuts meet their objectives? Why or why not?


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