You are given the following data on hourly wage rates for the Canadian manufacturing sector and on the consumer price index (CPI): Year 1985 1990 1992 1995 2000 2003 Average hourly rate $11.59 $14.19 $15.38 $16.19 $18.29 $19.70 CPI 75.0 93.3 100.0 104.2 113.6 122.3 Construct the index of real hourly wages for the years given, starting with 1985 and ending with 2003. Use 1992 as the base year. What is the percentage change in the average hourly nominal wage between 1985 and 2003? What is the percentage change in the average hourly real wage?

Which Professor Is Better Off? Suppose the starting salary for a new assistant economics professor was $20,000 in 1976 and $85,000 in 2014. The value of the CPI for 2014 was 236.7, compared to 56.9 in 1976. A newly-hired professor earned more in real terms in ( 1976 or 2014), with a real salary of $___ enter your response here. (Enter your response rounded to the nearest integer.)

The table below represents the monthly unemployment rates in the US from January of 2005 through May of 2016. Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2005 5.3% 5.4% 5.2% 5.2% 5.1% 5.0% 5.0% 4.9% 5.0% 5.0% 5.0% 4.9% 2006 4.7% 4.8% 4.7% 4.7% 4.6% 4.6% 4.7% 4.7% 4.5% 4.4% 4.5% 4.4% 2007 4.6% 4.5% 4.4% 4.5% 4.4% 4.6% 4.7% 4.6% 4.7% 4.7% 4.7% 5.0% 2008 5.0% 4.9% 5.1% 5.0% 5.4% 5.6% 5.8% 6.1% 6.1% 6.5% 6.8% 7.3% 2009 7.8% 8.3% 8.7% 9.0% 9.4% 9.5% 9.5% 9.6% 9.8% 10.0% 9.9% 9.9% 2010 9.7% 9.8% 9.9% 9.9% 9.6% 9.4% 9.5% 9.5% 9.5% 9.5% 9.8% 9.4% 2011 9.1% 9.0% 9.0% 9.1% 9.0% 9.1% 9.0% 9.0% 9.0% 8.8% 8.6% 8.5% 2012 8.2% 8.3% 8.2% 8.2% 8.2% 8.2% 8.2% 8.1% 7.8% 7.8% 7.8% 7.9% 2013 7.9% 7.7% 7.5% 7.5% 7.5% 7.5% 7.3% 7.2%…

Refer to the diagram to the right: Land is the other (fixed) factor of production. Currently the real wage is $15. Calculate the change in land rents due to a $5 increase in the real wage. A Land rents = $. (Enter your response rounded to the nearest dollar. Be sure to include the minus sign if necessary.) 60- 55- 50 45- 40- 35 30- 25- 20- 15- 10- 5- 0+ 0 Marginal product of labor, MPL 10 Real Wage Real Wage MPL 20 30 40 50 60 70 80 90 100 110 Labor, L