Suppose you observed that the unemployment rate went down; however, no (net) new jobs were created. How could the unemployment rate go down if more jobs were not created? Explain.

b) One of the several explanations provided to a low wage growth is the changing nature of jobs. In recent years, we observe an increase in automation and the use of artificial intelligence (AI). How do the automation and the use of AI lead to a slowdown in wage growth? Explain in words only.