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

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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 a paperback 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 price of a paperback is $14.00 and the price of a Americano is $8.00. In 2017, the relative price of a paperback is Between 2012 and 2017, the nominal value of Yesmina's wage Monetary neutrality is the proposition that a change in the money supply variables. does not affect affects + nd the real value of her wage nominal variables and real
Transcribed Image Text: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 a paperback 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 price of a paperback is $14.00 and the price of a Americano is $8.00. In 2017, the relative price of a paperback is Between 2012 and 2017, the nominal value of Yesmina's wage Monetary neutrality is the proposition that a change in the money supply variables. does not affect affects + nd 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. 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 a paperback 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 price of a paperback is $14.00 and the price of a Americano is $8.00. In 2017, the relative price of a paperback is Between 2012 and 2017, the nominal value of Yesmina'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
Transcribed Image Text: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 a paperback 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 price of a paperback is $14.00 and the price of a Americano is $8.00. In 2017, the relative price of a paperback is Between 2012 and 2017, the nominal value of Yesmina'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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