(i) (5%) Use Wald test to find the rejection region.

(e) (5%) Suppose that there is a developed North country and a developing South country. Suppose that prior to the pandemic, the two countries have the same sector specific unemployment rate, but their labor force compositions are different, i.e., \( v^N \neq v^S \). Which country has a higher \( v \), the North or the South? Which country has a higher unemployment rate prior to the pandemic? How the pandemic affects the job separation rates and the job finding rates in the North and the South? Which country has a higher unemployment rate during the pandemic? Briefly explain your answer.

題組內容

(i) \( (5\%) \) Use Wald test to find the rejection region.

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