Question 1 [in March 221 the Irish Government introduced the Pandemic Unemployment Payment to proyide financial support for people who lost their jot: due to the comp1e pandemic. According to the Department of Social Protection. the payment is due to be discontinued in the near future. a} Discuss which of the models covered in class might be the most appropriate to study the effect of the introduction of the Pandemic Unemployment Payment on I the economy. Represent graphically and explain the shortrun and mediumrun effects of this policy on the labor, gggds and nancial markets. [40 marks] ti} Based on the labor market effects discussed in point a], present a likely reason that motiyates the ln'sh goyemment to terminate the payment. [25 marks] c} Based on the discussion in points a] and bl propose the design of a policy that would have the same expected effect on the Irish natural level of output and unemployment as the termination of the payment would have. [35 marks]