Assume that the labor force is 150 million people and there are 10 million discouraged workers who do not have a job but are not looking for one either. On average, it takes 2 months for an unemployed person to find a job. A job lasts for 30 months on average. Assume that the (official) unemployment rate is 10 percent at the beginning of April.

(a) How much will the (official) unemployment rate be at the beginning of May?

(b) Assume that at the beginning of May, the 10 million discouraged workers start looking for a job. How much will the unemployment rate be at the beginning of June?

(c) If we wait long enough, the unemployment rate will converge to some value. Calculate this value.