Please help me solve the problem below..........................................

Suppose a country has a population of 1 million people who are over 16 years old and not in the army or jail. These people can be employed, unemployed or out of the labor force. The following table shows transitiOn probabilities between the three states. Employed Unemployed Out of the Labor Force Employed | 0.85 0.1 0.05 | 1/6 Out of the Labor Force I 0.75 p where 0 g p S 0.75 and probabilities are interpreted as follows. The entry in the rst row, second column is 0.1, which means in a given period 10% of employed workers become unemployed. The entry in the second row, third column is 1/6, which means in a given period every sixth unemployed worker leaves the labor force. (Alternatively, entries are transition probabilities from the row state to the column state. For the purposes of this exercise, you should assume that probabilities and fractions are the same.) 1. Based on the denitions discussed in class, what value would you expect p to have? Why? How could you interpret a different value of p? (5 points) 2. Calculate the steady state unemployment rate as a function of p. (10 points) 3. Is the steady state unemployment rate increasing or decreasing or neither in p? Is this result consistent with your interpretation of p in part (a)? (5 points)