The labour market is described by the following labour demand and supply functions DU) = an + alwu) + o2W(t) + Wot) and S(t) = 3C. + ll/VG). The market is in equilibrium if D(t) = 5(t). Assume that on = 16, a1 = 70, a2 = 16, = 400, 31 = 6. (a) What wage rate, W* is consistent with the labour market being in a long run steady-state, when labour supply equals demand? (4 marks) (b) Find the time path of wages, when initially at time=0: W(U) = 10, i: (0) = 4. Comment on your answers. (9 marks)