Suppose everyone in a population of 140 million people is either employed or unemployed. (No one is out of the labor force.) The monthly exit rate from unemployment h is 38 percent, and the monthly separation rate from employment s is 2 percent.

4a. Use these two rates and compute the steady state unemployment rate.

4b. How many people are employed and unemployed in the steady state?

4c. In the steady state, how many people exit employment to enter employment each month?