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In three to five sentences,explain how deviance is functional and draw on at least two specific examples to illustrate your argument.
Nominal Variables
Economic variables measured in current prices, without adjusting for inflation, reflecting their value in terms of current money.
Real Variables
Economic variables that have been adjusted for inflation, allowing for the comparison of quantities over time.
Monetary Neutrality
The idea that changes in the money supply only affect nominal variables and have no long-term impact on real variables like output or employment.
Real Variables
Economic variables that have been adjusted for changes in price levels, reflecting the actual purchasing power.
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