The Classical Dichotomy Refers to the Idea That the Supply

question 146

Multiple Choice

The classical dichotomy refers to the idea that the supply of money

• A)is irrelevant for understanding the determinants of nominal and real variables.
• B)determines nominal variables,but not real variables.
• C)determines real variables,but not nominal variables.
• D)is a determinant of both real and nominal variables.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of it that sellers are willing to supply.

Quantity Demanded

The complete sum of a particular good or service that customers are prepared and able to buy at a given price level.

Quantity Supplied

The level of supply for a good or service that vendors are able and willing to make available at a particular price over a particular duration.