Please answer everything in the photos. The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.Yesmina divides all of her income between spending on paperbacks and Americanos. In 2012, she earned an hourly wage of $28.00, the price of apaperback was $7.00, and the price of a Americano was $4.00.Which of the following give the real value of a variable? Check all that apply.The price of a paperback is $7.00 in 2012.Yesmina's wage is $28.00 per hour in 2012.The price of a paperback is 1.75 Americanos in 2012.Which of the following give the nominal value of a variable? Check all that apply.The price of a Americano is 0.57 paperbacks in 2012.Yesmina's wage is 4 paperbacks per hour in 2012.The price of a Americano is $4.00 in 2012.Suppose that the Fed sharply increases the money supply between 2012 and 2017. In 2017, Yesmina's wage has risen to $56.00 per hour. The priceof a paperback is $14.00 and the price of a Americano is $8.00.In 2017, the relative price of a paperback isBetween 2012 and 2017, the nominal value of Yesmina's wageMonetary neutrality is the proposition that a change in the money supplyvariables.does not affectaffects+nd the real value of her wagenominal variables andreal The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.Yesmina divides all of her income between spending on paperbacks and Americanos. In 2012, she earned an hourly wage of $28.00, the price of apaperback was $7.00, and the price of a Americano was $4.00.Which of the following give the real value of a variable? Check all that apply.O The price of a paperback is $7.00 in 2012.Yesmina's wage is $28.00 per hour in 2012.The price of a paperback is 1.75 Americanos in 2012.Which of the following give the nominal value of a variable? Check all that apply.The price of a Americano is 0.57 paperbacks in 2012.Yesmina's wage is 4 paperbacks per hour in 2012.The price of a Americano is $4.00 in 2012.Suppose that the Fed sharply increases the money supply between 2012 and 2017. In 2017, Yesmina's wage has risen to $56.00 per hour. The priceof a paperback is $14.00 and the price of a Americano is $8.00.In 2017, the relative price of a paperback isBetween 2012 and 2017, the nominal value of Yesmina's wageMonetary neutrality is the proposition that a change in the money supplyvariables.and the real value of her wagenominal variables andreal

Nominal variables are measured in monetary terms. Real variables are measured in physical terms.…

Answered: The classical dichotomy is the…

The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter13: Measuring The Economy's Performance

Section: Chapter Questions

Problem 22AA

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Which of the following is an example of a nominal variable? A.) Output B.) Employment C.) Prices D.) Physical capital
What is the difference between nominal and real variables? Give two examples of each.
Suppose consumer confidence falls. What happens to the nominal interest rate and income?