Short Question 2: (20 points) This question helps you think through some of the ingredients of President Biden's $1.9 trillion scal package. Assume wage rate is rigid for all parts of this question. That is, wages fail to adjust after a shock to labor demand or supply. A) Assume that economy is at the intersection of labor-supply and labor demand. In March 2020, coronavirus recession started in the US with widespread lockdowns imposed by various state governments. Use the labor-supply/ demand framework to discuss what happens to the number of unemployed and the size of labor-force in this economy? (8 B) Due to the shutdown in childcare services provided by babysitters or child-care organizations, many women decided to leave the laborforce to focus on childcare duties. Extend your labor-supply/demand diagram to explain how this decision by women affect your answer in Part A). That is, what would happen to the number of unemployed and the size of labor-force in this economy. (8 points) (Hint: assume that the shift in labor supply is less than the shift in labordemand.) C) In Feb 2020, unemployment rate for women in the US was 3.4%, and their labor force participation rate was 57.8%. In Jan 2021, women unemployment rate was 6.3%, and their labor force participation rate was 55.7%. President Biden is considering two types of relief packages to help vulnerable households affected by the Covid-19 recession. First type involves providing unemployment insurance to the unemployed individuals. Second type involves $1400 direct checks to households. Using your answer in part B, or the facts quoted here about unemployment rate and labor force participation rate of women, explain why unemployment insurance is not enough, by itself, to provide relief to affected households. (4 points)