2. [10 points in total; 2.5 pts. each.) Suppose that State Z introduced a public program in 2016 to improve the labor market conditions, specifically the labor supply in terms of number of hours worked within the State. As a Special Economic Advisor to the State Governor, you have been assigned the task of evaluating the program. Specifically, the Governor is interested in evidence about whether this program has led to effective increases in labor supply (as defined earlier) within the state. You observe the following information: Year Number of hours worked in State Z (in millions) 600 2011 2013 2015 620 640 2017 700 A. Using the appropriate approach, as discussed in class, what do you think is a better estimator to evaluate this program and what the best estimate is? B. Suppose that you find information on the neighboring State, W, that did not put in place any program to improve the labor market conditions during the same time period. You observe the following information in that state: Year Number of hours worked in State W (in millions) 560 580 2011 2013 600 2015 2017 640 Based on this additional information, what is your best estimate of the effect of the program on the labor supply? C. What assumptions are required for that to be the right estimate of the effect of the new program? Explain. D. What other factors may explain the change or make your estimate incorrect