In Frictionlandia, the monthly job separation rate is s = 0.1 and the monthly job-nding rate is f = 0.2 per month. A website that allows jobseekers to post their CVs online is established, which increases f to 0.35.

Assume that the unemployment rate was at its steady-state value u 1 just before the website was introduced. Use the formula you developed and nd the unemployment rate over the next year. How quickly does the unemployment rate converge to the new steady-state level?