P4. In the context of the shirking model presented on page 771, suppose that the facts are as follows: . v = $8 and b = $2 . G = $2.5 and q = 0.5 . s(u) = a constant = 0.5 . The marginal revenue product of labor (MRP) is MRP = 100- 100 . e, where e is the employ- ment rate. (a) Temporarily assume that q = 1, so there is per- fect monitoring. What is the equilibrium employ- ment rate, e*? Is any unemployment that arises involuntary?(b) Now assume that the detection probability is q =0.5. What is the no-shirking wage? Determine the equilibrium employment (ex) and unemployment (u*) rates. Is this unemployment involuntary? (c) Suppose that the government increases the value of unemployment benefits to b = $7. What happens to the equilibrium unemployment rate? Hint: Use the no-shirking condition (NSC), Equation 22.3