Answer to Question 1
In the steady state universe hypothesis, the universe is continually expanding, with new galaxies forming in the empty gaps. However, this hypothesis did not predict the existence of the cosmic microwave background, and would imply that galaxies would look the same at all distances. This did not match observations that the population of galaxies at great distances (and hence lookback times) is different from galaxies in the modern universe.
Answer to Question 2
The youngest stars (with ages determined using the HR diagram) are found near or embedded in large dark, molecular clouds. Molecular clouds have low temperatures (10-30 K) and high densities (up to thousands of times denser than the interstellar medium in general), consistent with the theory of star formation. Molecular clouds have masses equivalent to hundreds or thousands of stars.
Events of the absorptive state.
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