Consider a hypothetical labor force dynamics scenario for the month of November 2010. The stocks are the following: unemployed (U) = 5 million, employed (E) = 10 million, and Not-in-the- LF (~LF) = 3 million. From the beginning of November to the end of November the change in U is (+)1 million and the change in ~LF is (+)1 million. The flow from ~LF to U is 2 million, and the flow from U to ~LF is 1.5 million. The flow from U to E is 2 million, and the flow from E to U is 2.5 million.

(a) What are some possible flows between E and ~LF?

(b) What is the change in the stock of E?