3. (60 pts.) The US. Department of Labor's Bureau of Labor Statistics reported the following figures for first quarter of 2005 and first quarter of 2010 (thousands of persons): 2005Q1 201OQ1 Total hires 5,209 3,963 Total separations 5,057 3,918 Total unemployed individuals 7,834 15,095 Total employed individuals 133,079 130,600 In answering the following questions, consider our simple model of unemployment dynamics, tt+1 u; = 5(1 at) out where s is the separation rate, a is the accession rate, and u; is the unemployment rate at time t. a. (10 pts.) What was the steady state unemployment rate associated with the labor market figures reported in the first quarter of 2005? b. (10 pts.) What was the steady state unemployment rate associated with the labor market figures reported in the first quarter of 2010? c. (10 pts.) Is it the accession rate or the separation rate that is responsible for the change in the labor market