Identify Each of the Following as Nominal or Real Variables

question 10

Essay

Identify each of the following as nominal or real variables.
a. the physical output of goods and services
b. the overall price level
c. the dollar price of coffee
d. the price of coffee relative to the price of tea
e. the unemployment rate
f. the tips that you earn from your part-time serving job
g. the amount of goods you can purchase with the wage you get each hour
h. the income taxes that you pay the government

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Definitions:

Elaboration

The process of adding more detail or information to something, often used to enhance memory or understanding.

First Five Presidents

Refers to the initial five presidents of the United States: George Washington, John Adams, Thomas Jefferson, James Madison, and James Monroe, who served in office from 1789 to 1825.

Selective Attention

The cognitive process of focusing on a specific aspect of information while ignoring other perceivable information.

Divided Attention

Refers to the ability to process two or more responses or react to two or more different demands simultaneously.