Question 1. CDVlD-19,JobKeeper and Unemployment in the Pandemic. Consider the following matching model of the labour market: Please note that u and v are expressed in number, not in percentage. M: u(1 9'5) (1) Matching Function S = ( l u) s (2) Separation Function S = M (3) Steady State Equilibrium 6*= 0.5 + 0.01}: c - r 4) - s + W (4) Equilibrium Market Tightness In the above equations, e 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-1 9 (which is denoted by could) and the government policies aimed to support jobs (which is denoted by jobkeeper): M = 0.8 - 0.25 covt'd, s = 0.025 + 0.125 covid 0.5jobkeeper, qt = 0.5, y = 100 10 covid