Last year, you earned a nominal wage of \( \$ 10 \) per hour and the price level was 120 . This year your nominal wage is \( \$ 11 \) per hour, but you are unable to purchase the same amount of goods as last year. The price level this year must be

Lin's father is paying for a \( \$ 20 \) meal. He has a \( 15 \% \) off coupon for the meal. After the discount, a \( 7 \% \) sales tax is applied. What does Lin's father pay for the meal? Show your explanation/reasoning using the sketchpad.

Question 2 If a bank with a required reserve ratio of 15 percent receives a deposit of \( \$ 600 \), it now has a \( \$ 600 \) increase in excess reserves and no increase in required reserves. \( \$ 600 \) increase in required reserves and no increase in excess reserves. \( \$ 90 \) increase in excess reserves and a \( \$ 510 \) increase in required reserves. \( \$ 510 \) increase in excess reserves and a \( \$ 90 \) increase in required reserves.

A bank has a 10 percent reserve requirement, \( \$ 36,000 \) in loans, and has loaned out all it can, given the reserve requirement. It has \( \$ 32,400 \) in deposits. It has \( \$ 3,600 \) in deposits. It has \( \$ 39,600 \) in deposits. (t) has \( \$ 40,000 \) in deposits.

What is the likely outcome in a market when supply exceeds demand for a product, leading to surpluses? The product will become scarce, leading to a shortage in the market. Businesses may lower prices and run sales or promotions to encourage more purchases. Prices are likely to increase as businesses respond to the excess supply. Prices will remain stable, and demand will catch up with supply over time.

Tyler's brother works in a shoe store. 7 Tyler's brother earns a commission. He makes \( 2.5 \% \) of the amount he sells. Last week, he sold \( \$ 900 \) worth of shoes. How much was his commission? (a) (b) The store bought a pair of shoes for \( \$ 50 \) and sold it for \( \$ 80 \). What percentage was the markup? (c) Tyler's brother earns \( \$ 12 \) per hour. The store offers him a raise -- a \( 5 \% \) increase per hour. After the raise, how much will Tyler's brother make per hour? \( \$ \) \$