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(12 marks) Suppose in a certain country, the job separation rate is 1 percent while the job finding rate is 14 percent. a. Use the

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(12 marks) Suppose in a certain country, the job separation rate is 1 percent while the job finding rate is 14 percent. a. Use the given information to calculate the natural rate of unemployment of this country. (3 marks) b. Suppose with the recent movement of "Great Resignation", more workers quit their jobs. Other things unchanged, briefly explain how this would affect the natural rate of unemployment as calculated in (a). No calculation is required in (b). (3 marks) c. Explain TWO limitations of using this model to estimate the natural rate of unemployment. (6 marks)

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