Question 3: Labor Market............ ... . . .. . . . . . .. ........ . . . . . . . . . . . . . . . . . . . . . . . .. . 10 points Consider the labor market data in Table 2. The data depicts two alternate scenarios. For the first two parts of the question, you may ignore the rows that begin with "Not in labor force..." (a) (4 points) What is the unemployment rate for each of these two scenarios? (b) (4 points) Which of these two scenarios would you use to calculate the natural rate of unemploy- ment? What is the natural rate of unemployment? (c) (2 points) How much has the labor force changed in scenario 1? Table 2: Question 3 Scenario 1 Scenario 2 Flows into employment Total employment 159,066 159,066 Employed to employed 152,964 152,964 Unemployed to employed 1,402 1,402 Not in labor force to employed 4,700 4,700 Flows into unemployment Total unemployment 5,510 5,510 Employed to unemployed 1,296 1,402 Unemployed to unemployed 2,686 2,580 Not in labor force to unemployed 1,528 1,528