Short Question 3: {25 points] (a) Briey provide two reasons why higher levels of ination might be costly for an econ omy. {4 points] [b] Briey explain what drives sustained economic growth rate in the Homer model? {3 points} [{3} Draw a graph with a labor supply curve and a labor demand curve {put employment on the xaxis}. Explain why one curve slopes upwards and the other curve slopes downwards. (5 points} {d} An unusually warm summer increases workers' preference for leisure time. Show this change on your supply and demand diagram. TWhat effect will this shock have on employment and wages? {3 points] (Note this question is not a continuation of any of the previous questions.) {e} Suppose there has been an increase in female labor force participation, just like in the United States. Show how to model this change on a labor supply and demand diagram. What happens to the employmentpopulation ratio and what happens to the wage? Explain. {5 points] {Note this question is not a continuation of any of the previous questions.) {f} In the data, you notice that average real wages and the employmentpopulation ratio have both risen. Using a labor supply and demand model, how could you explain this fact? [5 points) (Note this question is not a continuation of any of the previous questions.)