Question

The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Poornima spends all of her money on comic books and beignets. In 2012, she earned $16.00 per hour, the price of a comic book was $8.00, and the price of a beignet was $1.00. Which of the following give the nominal value of a variable? Check all that apply. O Poornima's wage is 2 comic books per hour in 2012. The price of a beignet is 0.13 comic books in 2012. The price of a beignet is $1.00 in 2012. Which of the following give the real value of a variable? Check all that apply. Poornima's wage is $16.00 per hour in 2012. The price of a comic book is $8.00 in 2012. The price of a comic book is 8 beignets in 2012. Suppose that the Fed sharply increases the money supply between 2012 and 2017. In 2017, Poornima's wage has risen to $32.00 per hour. The price of a comic book is $16.00 and the price of a beignet is $2.00. In 2017, the relative price of a comic book is Between 2012 and 2017, the nominal value of Poornima's wage , and the real value of her wage nominal variables and real Monetary neutrality is the proposition that a change in the money supply variables.

Answer 1

Nominal Value =

-option(C)

Real Value =

-option(C)

Blanks-

1) 16/2 = 8 beignet

2) increases

3) remains the same

4) affects

5) does not affect