In a fixed exchange rate regime, an increase in the price level ...

[Jkov05]

In a fixed exchange rate regime, an increase in the price level will cause which of the following?
 
  A) a real appreciation and a leftward shift in the aggregate demand curve
  B) a real appreciation and no shift in the aggregate demand curve
  C) a real depreciation and a rightward shift in the aggregate demand curve
  D) a real depreciation and no shift in the aggregate demand curve
  E) no change in the real exchange rate, and no change in aggregate demand

Question 2

When the economy is in the steady state, we know with certainty that
 
  A) investment per worker is equal to depreciation per worker.
  B) consumption per worker is maximized.
  C) output per worker is maximized.
  D) the growth rate is maximized.
  E) all of the above

[dyrone]

Answer to Question 1

D

Answer to Question 2

A

[Jkov05]

Thank you

[dyrone]

Happy to help you