1. Answer the following labor questions (6 marks):

a)Explain why people may decide to join the labour force during booms.

b)From part a), explain why the unemployment rate might rise during a boom, even when the level of employment is also rising.

c)During a recession, suppose unemployed workers, leave the labour force because they are discouraged about their inability to find a job. What happens to the unemployment rate?

d)"A declining unemployment rate is a clear positive sign for the economy." Comment.