The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Lucia spends all of her money on magazines and donuts. In 2014, she earned $14.00 per hour, the price of a magazine was $7.00, and the price of a donut was $1.00. Which of the following give the nominal value of a variable? Check all that apply. Lucia's wage is 2 magazines per hour in 2014. The price of a donut is 0.14 magazines in 2014. Lucia's wage is $14.00 per hour in 2014. Which of the following give the real value of a variable? Check all that apply. Lucia's wage is $14.00 per hour in 2014. The price of a magazine is $7.00 in 2014. Lucia's wage is 14 donuts per hour in 2014. Suppose that the Fed sharply increases the money supply between 2014 and 2019. In 2019, Lucia's wage has risen to $28.00 per hour. The price of a magazine is $14.00 and the price of a donut is $2.00. In 2019, the relative price of a magazine is Between 2014 and 2019, the nominal value of Lucia'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

The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Lucia spends all of her money on magazines and donuts. In 2014, she earned $14.00 per hour, the price of a magazine was $7.00, and the price of a donut was $1.00. Which of the following give the nominal value of a variable? Check all that apply. Lucia's wage is 2 magazines per hour in 2014. The price of a donut is 0.14 magazines in 2014. Lucia's wage is $14.00 per hour in 2014. Which of the following give the real value of a variable? Check all that apply. Lucia's wage is $14.00 per hour in 2014. The price of a magazine is $7.00 in 2014. Lucia's wage is 14 donuts per hour in 2014. Suppose that the Fed sharply increases the money supply between 2014 and 2019. In 2019, Lucia's wage has risen to $28.00 per hour. The price of a magazine is $14.00 and the price of a donut is $2.00. In 2019, the relative price of a magazine is Between 2014 and 2019, the nominal value of Lucia'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

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Measuring The Cost Of Living

Section: Chapter Questions

Problem 3CQQ

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