a) b) Explain the concept of the natural rate of unemployment. (5 marks) Explain its key determinants using the WSPS (wage setting-price setting) model. Explain the intuition behind the WS and PS curves in real wage and unemployment space. (5 marks) Why does the natural rate of unemployment differ across countries and over time? (5 marks) Why is it important for policy-makers to know the current natural rate of unemployment? (5 marks) Do you think the COVID-lQ shock might have affected the natural rate of unemployment? Explain why