Suppose the real interest rate in the economy is 3% and the nominal interest rate is 6%, what is the current inflation rate?

Inflation increases:

A. the prices of goods and services only. B. all prices, including wages. C. only consumer prices, not producer prices. D. wages first, followed by product prices.

Gomer can make either 200 gallons of corn liquor (L) or 200 gallons of strawberry wine (W) every six months. Goober can make only 100 gallons of corn liquor (L) or 50 gallons of strawberry wine (W) every six months. Which statement below is true?

A) Gomer produces W more efficiently than Goober. B) Gomer produces L less efficiently than Goober. C) Goober produces L more efficiently than Gomer. D) All of the above are true.