Question 3. (a) (b) Consider the search and matching model. If the economy has a powerful labor union that gives workers more bargaining power. i.e. a increases. Analysis of the effects on labor participation rate, unemployment rate, vacancy rate, and GDP. Use graphic(s) to help you to explain. (10 marks) Consider the search and matching model again. To prevent the spread of coronavirus, workers were ordered to stay home. Let us interpret z decreases because workers can not go to work. Determine the effects on the unemployment rate, vacancy rate, labor force, the number of firms, aggregate output, and labor market tightness in this pandemic. Use graphic(s) to help you to explain. (10 marks)