(12 marks) Suppose in a certain country, the job separation rate is 1.5 percent while the job finding rate is 13.5 percent.

Use the given information to calculate the natural rate of unemployment of this country. (3 marks)

With extensive use of the internet, it becomes easier to find new jobs. Other things unchanged, briefly explain how this affects the natural rate of unemployment calculated in (a). (3 marks)

Some economists argue that we cannot rely on this model to estimate and explain the natural rate of unemployment of an economy. Explain the

plausible arguments.

(6 marks)