Let the separation rate s be 0.025, so that each period 2.5 percent of the employed become unemployed. Use this to answer the following questions. 1. Let unemployment benefits be b = 1 and the job offer rate be p = 0.5. Solve (to the full accuracy of your calculator) for the numerical values of (a) the reservation wage w-; (b) H(w-). According to Figure 6.10, this is supposed to be a positive fraction. Is it? (c) The equilibrium unemployment rate U. (d) Suppose the labour force consists of 20 million workers. At your equilibrium unemployment rate, i. how many are unemployed? ii. How many are employed? iii. How many workers lose their jobs and become unemployed each period? iv. How many unemployed find jobs and become employed each period