in 2016, the relative price of a novel is [$4/ 0.5 novels/ 2 beignets/ $2] choos
ID: 1181010 • Letter: I
Question
in 2016, the relative price of a novel is [$4/ 0.5 novels/ 2 beignets/ $2] choose one.
Caroline's wage [increases/ remains the same/ decreases], and.... wage [remains the same/ increases/ decreases]
affects[real/ nominal] but not [real/ nominal]
The classical dichotomy is the separation of real and nominal variables. The following questions ask you to make this distinction. Caroline is a construction worker who spends all of her money on novels and beignets. In 2011 she earned $10 per hour, the price of a novel was $2, and the price of a beignet was $1. Which of the following choices involve nominal variables? Check all that apply. The price of a beignet is 0.5 novels in 2011. Caroline's wage is 5 novels per hour in 2011. The price of a beignet is $1 in 2011. Caroline's wage is $10 per hour in 2011. Which of the following choices involve real variables? Check all that apply. The price of a novel is $2 in 2011. Caroline's wage is 10 beignets per hour in 2011. The price of a novel is 2 beignets in 2011. Caroline's wage is $10 per hour in 2011. Suppose that the Bank of Canada sharply increases the money supply between 2011 and 2016. In 2016, Caroline's wage has risen to $20 per hour. The price of a novel is $4 and the price of a beignet is $2. In 2016, the relative price of a novel is______ . Between 2011 and 2016, the nominal value of Caroline's wage_ and the real value of her wage____________ . Monetary neutrality is the proposition that a change in the money supplies affects variables. variables but not __________ variables.Explanation / Answer
Caroline's wage is $10 per hour in 2011
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Caroline's wage is 10 beignets per hour in 2011
Caroline's wage is $10 per hour in 2011
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