Based on the Solow models conclusions about population growt

Based on the Solow model’s conclusions about population growth, comment on the effects of immigration on a country’s: (a) aggregate output level; (b) capital-labor ratio. (Note: in this case we’re concerned with the level of population, rather than the population growth rate.

Solution

The Solow economic model attempts to explain long-run economic growth by considering the capital accumulation, labor or population growth, and hiked productivity, commonly referred to as technological progress. When labour Progress or Population growth is zero, economy may also ceases to grow . Migration of Population will impact the labour rate directly Economies have to invest lot on other Countries or poor countries population for their labour requirement. Human capital\'s external effects on national income are greater than its direct effect on workers\' salaries. Aggregate output may be less on every production as labour which is a important Factor of Production are low. Even if capital is more but when labour ratio is less output will also be low.