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Hi, here are the questions, thank you! 7. Suppose a college student earns $60,000 per year after graduating and works for 50 years. The interest

Hi, here are the questions, thank you!

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7. Suppose a college student earns $60,000 per year after graduating and works for 50 years. The interest rate is 3%. What is the present discounted value of their life-time earnings (assuming no growth in wages)? a) $ 0.1 million b) $ 6.77 million 0) $ 1.59 million (1) $ 1.8 million e) 8 16 million 8. Consider the following table and answer this question using the bathtub model of unem- ployment. Separation rate Finding rate Labor force 2017 2% 20% 130 million 2018 2.5% 15% 100 million Assume that actual unemployment rate is equal to natural rate of unemployment in 2018. The number of unemployed people who nd a job in 2018 are a) 2.03 million b) 2.14 million 0) 2.54 million d) 15.21 million e) 16.11 million

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