The Model of the Labour Force Dynamics I. Suppose that in the economy the average period of being employed is 80 months, while the average period of being unemployed is 4 months. (a) Calculate: (i) the job separation rate; (ii) the job finding rate; (iii) the steady-state rate of unemployment. (b) What happens to the job separation rate, the job finding rate and the natural rate of unemployment: (i) if compared to point (a), the average period of being employed becomes 85 months; (ii) if compared to point (a), the average period of being unemployed becomes 5 months. Briefly explain the results. II. Suppose the steady state rate of unemployment in the economy is 5%, and in average 20% of unemployed find jobs each month, while the number of the labour force is 200 million. Calculate: (i) the number of unemployed; (i1) the number of employed; (iii) the number of employed that lose their jobs each month. Draw the diagram of the labour force dynamics for this economy, putting figures from your