If expected inflation were 4%, and the real interest rate was 5%, what sector would be worse off if the actual inflation rate turned out to be 3%

How can a country with a fixed nominal exchange rate, such as Greece, experience a lower real exchange rate?

A) by experiencing higher inflation than its partners B) by experiencing deflation if its partners have low inflation rates C) by limiting the growth of productivity D) by increasing wages at a faster rate than inflation

Based on these graphs, in both cases _____.

a. RGDP increases
b. RGDP decreases
c. price level increases
d. price level decreases