The Property of the Long-Run Model Known as the Classical

question 47

Multiple Choice

The property of the long-run model known as the classical dichotomy is best described by the statement

• A) changes in the money stock do not affect long-run inflation.
• B) the determination of real variables in the model requires information about nominal variables.
• C) the determination of nominal variables in the model requires information about real variables.
• D) the determination of real variables does not require information about nominal variables, although the determination of nominal variables does require information about real variables.
• E) the determination of nominal and real variables does not require information about the other.

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