According to the Classical Dichotomy, Which of the Following Is

question 54

Multiple Choice

According to the classical dichotomy, which of the following is not influenced by monetary factors?

• A)nominal GDP and nominal interest rates
• B)real wages and real GDP
• C)the price level and nominal GDP
• D)None of the above is correct.

---

Definitions:

Opportunity Cost

The relinquishment of possible rewards from other opportunities when one is selected.

Opportunity Cost

Refers to the benefits one foregoes by choosing one option over another, highlighting the trade-offs inherent in decision-making processes.

Bushel

A unit of volume that is used in the United States for measures of agricultural produce, such as grains, fruits, and vegetables.

Exchange Rate

The price of one country's currency in terms of another currency, determining how much foreign currency can be bought with a unit of the domestic currency or vice versa.