The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Eileen spends all of her money on paperback novels and mandarins. In 2015, she earned $27.00 per hour, the price of a paperback novel was $9.00, and the price of a mandarin was $3.00.   Which of the following give the nominal value of a variable? Check all that apply.   Eileen's wage is $27.00 per hour in 2015.   The price of a mandarin is $3.00 in 2015.   Eileen's wage is 3 paperback novels per hour in 2015.     Which of the following give the real value of a variable? Check all that apply.   Eileen's wage is 9 mandarins per hour in 2015.   The price of a paperback novel is 3 mandarins in 2015.   Eileen's wage is $27.00 per hour in 2015.     Suppose that the Fed sharply increases the money supply between 2015 and 2020. In 2020, Eileen's wage has risen to $54.00 per hour. The price of a paperback novel is $18.00 and the price of a mandarin is $6.00. In 2020, the relative price of a paperback novel is    .   Between 2015 and 2020, the nominal value of Eileen'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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