When E increases by 5, we know that A) a real appreciation ...

[fagboi]

When E increases by 5, we know that
 
  A) a real appreciation will occur if P decreases by 5.
  B) a real depreciation will occur if P also increases by 5.
  C) a nominal appreciation will occur.
  D) a nominal depreciation will occur.

Question 2

Suppose the actual unemployment rate decreases. This will cause
 
  A) an upward shift in the WS curve.
  B) a downward shift in the WS curve.
  C) an upward shift in the PS curve.
  D) a downward shift in the PS curve.
  E) none of the above

[underwood14]

Answer to Question 1

C

Answer to Question 2

E