Consider the following matching model of the labour market. The same model will be used for the remaining questions (07-012). M = Mu (1 r9) (1) Matching Function 8 = (1 u.) s (2) Separation Function 5' = M (3) Steady State Equilibrium 9' = 0.5 + 0.01;; c r :35 3 + E (4) Equilibrium Market Tightness In the above equations, (3 a: 2.7183. notation is as in the lecture notes. and in addition. the matching efciency, the separation rate. the Worker's bargaining power and the income per worker depends on the spread of covid-IQ (which is denoted by mad) and the government policies aimed to support jobs (which is denoted by jobkeeper): H = 0.3 - 0.25 cow'a', s = 0.025 + 0.125 cm'id 0.5 jobkeeper, d: = 0.5, y = 100 - 10 cow'd. Given that the values c = l, and r = 0.05