Assume the following labour market is at its long-term equilibrium. There are 900 employed workers in the economy and the unemployment rate is 10%. The probability for an employed worker to lose their job in any given month is s= 5% a) Use the definition of the unemployment rate to derive the number of unemployed work- ers U in the economy. b) What is the probability f, that an unemployed worker will find a job in a given month? c) How long does it take on average for an unemployed worker to find a job? Which labour market institutions (policies) impact this duration? d) The advent of online job searching sites has increased the monthly job finding to fa 0.5, while s has remained constant. What is the new equilibrium in the labour market? What is the unemployment rate, and what are the flows in and out of unemployment?