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X = Working-age population L = Labor force N = Number of people employed u = Unemployment rate p = Labor-force participation rate e = Employment ratio (a) In a hypothetical economy, L = 20 million, p = 70% and e = 65%. Find u, X and N. (6 points) (b) In another hypothetical economy, fraction a E (0, 1) of the labor force (L) are entrepreneurs. Each entrepreneur runs a firm. On the average, a firm employs n individuals including the entrepreneur. All the employed individuals in this economy are employed by the entrepreneurs. Find an expression for unemployment rate in this economy. (2 points) What is the unemployment rate if a = 0.05 and n = 18? (2 points) Now suppose that this country brings in a lot of immigrants in just a few years. The immigrants are more entrepreneurial but they have smaller businesses. The overall effect of immigration on this economy is to increase o to 0.07 and reduce n to 13. What is the new unemployment rate in this economy after immigration? (2 points)