Macroeconomics assignment help

Consider the following matching model of the labour market during a pandemic: M = HO'EUO'E, (1) Matching Function S = (1 u) (0.05 + com'd) , (2) Separation Function S = M , (3) Steady State Equilibrium 6* = 0.75 com'd. (4) Equilibrium Market Tightness In the above, com'd stands for the extent of the spread of the covid-19 pandemic in the population, which takes different values as specified below. In addition, M stands for the matching function, an unemployment rate, 1) vacancy rate, S separation function, 6 s E is the market tightness and 6* is the equilibrium market tightness. (a) Derive the Beveridge curve for the above labour market. (1 mark) (b) Rounding to four decimal places. compute the equilibrium values of 6*, 11*, and 11* for (i) com'd. = 0 and (ii) com'd = 0.05. (1 mark) (0) Explain briefly (in words and with a graph) the effect of the pandemic on this labour market. (1 mark)