What is the present value of a payment of $2,000 to be received two years from today if the interest rate is 5%?

When firms in a U.S. industry outsource some of their production,

A) both U.S. labor demand and U.S. wages in the industry fall B) U.S. labor demand falls, but U.S. wages are not affected. C) U.S. labor demand remains unchanged, but U.S. wages fall. D) U.S. labor demand falls, but U.S. wages increase.

During the time period represented in Figure 7.3, the purchasing power of the average worker 

A. Decreased because nominal income decreased. B. Stay the same because COLAs reduced purchasing power. C. Decreased because real income decreased. D. Increased because nominal wages increased.