Which of the following events will cause the largest real ...

[lbcchick]

Which of the following events will cause the largest real depreciation for the domestic economy?
 
  A) a 6 reduction in E and a 6 increase in the foreign price level (P)
  B) a 6 increase in the domestic price level (P) and a 6 reduction in P
  C) a 6 reduction in E and a 6 reduction in P
  D) a 3 increase in E
  E) a 2 increase in E and a 2 increase in P

Question 2

Based on our understanding of the labor market model presented in Chapter 6, we know that a reduction in the markup will cause
 
  A) an increase in the equilibrium real wage.
  B) a reduction in the equilibrium real wage.
  C) an increase in the natural rate of unemployment.
  D) a reduction in the natural rate of unemployment and no change in the real wage.

[Harbringer]

Answer to Question 1

C

Answer to Question 2

A

[lbcchick]

Great answer, keep it coming

[mjenn52]

Excellent