If actual inflation is greater than expected inflation, A) the ...

[Mr.Thesaxman]

If actual inflation is greater than expected inflation,
 
  A) the unemployment rate rises. B) the Phillips curve is a vertical line.
  C) real wages fall. D) real wages rise.

Question 2

Under a floating exchange rate, the exchange rate
 
  A) is determined by the interaction of supply of the currency and demand for the currency.
  B) is controlled by central bank intervention.
  C) is pegged against the euro.
  D) will change whenever the price of gold changes.

[djofnc]

Answer to Question 1

C

Answer to Question 2

A

[Mr.Thesaxman]

Thanks for the timely response, appreciate it

[Perkypinki]

YES! Correct, THANKS for helping me on my review