The price index was 136 in one year and 142 in the next year. What was the inflation rate between the two years?

The real exchange rate is the

A) relative price of U.S. produced output relative to foreign-produced output. B) price of foreign goods relative to the price of domestic goods. C) trade-weighted index. D) current account balance.

Refer to the given data. Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $8 to $10. As a result of the wage increase, firms will hire:

A.  fewer workers and the total paid out for wages will decline.
B.  fewer workers, but the total paid out for wages will increase.
C.  fewer workers, but the total paid out for wages will remain unchanged.
D.  more capital, if capital and labor are used in fixed proportions in production.