The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Alyssa spends all of her money on paperback novels and beignets. In 2013, she earned $18.00 per hour, the price of a paperback novel was $9.00, and the price of a beignet was $2.00. Which of the following give the nominal value of a variable? Check all that apply. Alyssa's wage is $18.00 per hour in 2013. The price of a beignet is $2.00 in 2013. Alyssa's wage is 2 paperback novels per hour in 2013. Which of the following give the real value of a variable? Check all that apply. Alyssa's wage is 9 beignets per hour in 2013. The price of a paperback novel is 4.5 beignets in 2013. Alyssa's wage is $18.00 per hour in 2013. Suppose that the Fed sharply increases the money supply between 2013 and 2018. In 2018, Alyssa's wage has risen to $36.00 per hour. The price of a paperback novel is $18.00 and the price of a beignet is $4.00.
The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Alyssa spends all of her money on paperback novels and beignets. In 2013, she earned $18.00 per hour, the price of a paperback novel was $9.00, and the price of a beignet was $2.00. Which of the following give the nominal value of a variable? Check all that apply. Alyssa's wage is $18.00 per hour in 2013. The price of a beignet is $2.00 in 2013. Alyssa's wage is 2 paperback novels per hour in 2013. Which of the following give the real value of a variable? Check all that apply. Alyssa's wage is 9 beignets per hour in 2013. The price of a paperback novel is 4.5 beignets in 2013. Alyssa's wage is $18.00 per hour in 2013. Suppose that the Fed sharply increases the money supply between 2013 and 2018. In 2018, Alyssa's wage has risen to $36.00 per hour. The price of a paperback novel is $18.00 and the price of a beignet is $4.00.
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 13P
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Transcribed Image Text:The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.
Alyssa spends all of her money on paperback novels and beignets. In 2013, she earned $18.00 per hour, the price of a paperback novel was $9.00,
and the price of a beignet was $2.00.
Which of the following give the nominal value of a variable? Check all that apply.
Alyssa's wage is $18.00 per hour in 2013.
The price of a beignet is $2.00 in 2013.
Alyssa's wage is 2 paperback novels per hour in 2013.
Which of the following give the real value of a variable? Check all that apply.
Alyssa's wage is 9 beignets per hour in 2013.
The price of a paperback novel is 4.5 beignets in 2013.
Alyssa's wage is $18.00 per hour in 2013.
Suppose that the Fed sharply increases the money supply between 2013 and 2018. In 2018, Alyssa's wage has risen to $36.00 per hour. The price of
a paperback novel is $18.00 and the price of a beignet is $4.00.
Transcribed Image Text:In 2018, the relative price of a paperback novel is
Between 2013 and 2018, the nominal value of Alyssa's wage
Monetary neutrality is the proposition that a change in the money supply
variables.
, and the real value of her wage
nominal variables and
real
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