Consider an economy in which the probability of an unemployed worker finding a job in a given month is 18% and the probability of an employed worker separating from their job is 2% per month. (a) What is the steady-state unemployment rate in this economy? How many unemployed become employed each month? (b) Imagine that there are some sudden changes in hiring and firing behavior and the job find rate increases to 38% per month. What will be the new steady-state unemployment rate? (c) Describe how the transition from the steady-state in part (a) to part (b) occurs. What happens to the amount of people who go from being unemployed to employed each month?