1. Suppose that the mark-up of good prices over marginal cost is 11. 1% (i.e. 1/9), and that the wage-setting equation is p = = F(u, z) = z(1 - u), where u is the unemployment rate. If z = 1 what is the natural rate of unemployment? (Express as a number - e.g. if the answer is 10% enter in 0.1).