Unemployment; u/u+e

(12 points) Consider an extension of the labor-marketpdynamios model in Chapter 7. In that model, 3 denote the rate of job separation, the fraction of employed individuals who lose or leave their jobs each month. f denote the rate of job nding, the fraction of unemployed individuals who nd a. job each month. The extension of the model allows for both the arrival of younger generations and death shocks. In particular, let 1) 1: denote the number of young people (for example, college graduates) who just enter the labor market and start looking for jobs. 2) (1 denote the rate of death, the fraction of employed or unemployed individuals who died each month. The dynamic in this extended model is plotted below. V 5x3 de XE Derive the steady-state unemployment rate in this model, 0%., as a function of s, f, :r, d. Please provide steps for your calculation