Assume there are two sectors in Country A: the urban and rural sectors. The urban sector produces urban goods: services, office work, finance, etc. The rural sector produces agricultural goods. Labor in Country A cannot move between sectors. Capital can move freely between the two industries. Suppose there is a country (Country B) near Country A whose population is immigrating to Country A to work in the urban sector. Utilizing all relevant mathematics, graphs, and economic reasoning, explain the effects of Country B immigration into Country A on the real wage of workers in both sectors, the real rental price paid to capital in both sectors, and the output of both sectors. Who is better off, and who is worse off?

The book Macroeconomics by N. Gregory Mankiw can be used as reference. The most frequent models used in class are Solow Model, AD-AS Model, IS-LM Model and Phillips Curve