The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Eleanor spends all of her money on comic books and donuts. In 2012, she earned $15.00 per hour, the price of a comic book was $5.00, and the price of a donut was $3.00. Which of the following give the nominal value of a variable? Check all that apply. O Eleanor's wage is $15.00 per hour in 2012. O Eleanor's wage is 3 comic books per hour in 2012. O The price of a donut is $3.00 in 2012. Which of the following give the real value of a variable? Check all that apply. O Eleanor's wage is 5 donuts per hour in 2012. O Eleanor's wage is $15.00 per hour in 2012. O The price of a comic book is 1.67 donuts in 2012. Suppose that the Fed sharply increases the money supply between 2012 and 2017. In 2017, Eleanor's wage has risen to $30.00 per hour. The price of a comic book is $10.00 and the price of a donut is $6.00. In 2017, the relative price of a comic book is Between 2012 and 2017, the nominal value of Eleanor's wage , and the real value of her wage Monetary neutrality is the proposition that a change in the money supply nominal variables and real variables.
The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Eleanor spends all of her money on comic books and donuts. In 2012, she earned $15.00 per hour, the price of a comic book was $5.00, and the price of a donut was $3.00. Which of the following give the nominal value of a variable? Check all that apply. O Eleanor's wage is $15.00 per hour in 2012. O Eleanor's wage is 3 comic books per hour in 2012. O The price of a donut is $3.00 in 2012. Which of the following give the real value of a variable? Check all that apply. O Eleanor's wage is 5 donuts per hour in 2012. O Eleanor's wage is $15.00 per hour in 2012. O The price of a comic book is 1.67 donuts in 2012. Suppose that the Fed sharply increases the money supply between 2012 and 2017. In 2017, Eleanor's wage has risen to $30.00 per hour. The price of a comic book is $10.00 and the price of a donut is $6.00. In 2017, the relative price of a comic book is Between 2012 and 2017, the nominal value of Eleanor's wage , and the real value of her wage Monetary neutrality is the proposition that a change in the money supply nominal variables and real variables.
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 13P
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Transcribed Image Text:1.25
MS1
1.00
0.75
Mon
Demand
0.50
MS,
0.25
1 2
4
7
QUANTITY OF MONEY (Billions of dollars)
According to your graph, the equilibrium value of money is
therefore the equilibrium price level is
VALUE OF MONEY
Transcribed Image Text:The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.
Eleanor spends all of her money on comic books and donuts. In 2012, she earned $15.00 per hour, the price of a comic book was $5.00, and the price
of a donut was $3.00.
Which of the following give the nominal value of a variable? Check all that apply.
Eleanor's wage is $15.00 per hour in 2012.
Eleanor's wage is 3 comic books per hour in 2012.
O The price of a donut is $3.00 in 2012.
Which of the following give the real value of a variable? Check all that apply.
9 Eleanor's wage is 5 donuts per hour in 2012.
Eleanor's wage is $15.00 per hour in 2012.
A The price of a comic book is 1.67 donuts in 2012.
Suppose that the Fed sharply increases the money supply between 2012 and 2017. In 2017, Eleanor's wage has risen to $30.00 per hour. The price of
a comic book is $10.00 and the price of a donut is $6.00.
In 2017, the relative price of a comic book is
Between 2012 and 2017, the nominal value of Eleanor's wage
and the real value of her wage
Monetary neutrality is the proposition that a change in the money supply
nominal variables and
real
variables.
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