1. Historically, young French workers (under age 25) have had relatively high unemployment rates: 21 percent in 2005. In 2006, the French government proposed to allow employers to fire young employees without cause (a labor restriction). How should this policy improve employment prospects for young French workers? What would the impact on their wages be? 2. Using the bathtub model of unemployment, calculate the natural rate of unemployment in 2015 and 2016. Separation Finding Labor rate rate force 2015 2% 20% 130 2016 2.5% 15% 100