3. The classical dichotomy and the neutrality of money The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Maria spends all of her money on paperback novels and donuts. In 2013, she earned $12.00 per hour, the price of a paperback novel was $6.00, and the price of a donut was $2.00. Which of the following give the nominal value of a variable? Check all that apply. Maria's wage is 2 paperback novels per hour in 2013. The price of a donut is $2.00 in 2013. Maria's wage is $12.00 per hour in 2013. Which of the following give the real value of a variable? Check all that apply. Maria's wage is $12.00 per hour in 2013. The price of a paperback novel is 3 donuts in 2013. Maria's wage is 6 donuts per hour in 2013. Suppose that the Fed sharply increases the money supply between 2013 and 2018. In 2018, Maria's wage has risen to $24.00 per hour. The price of a paperback novel is $12.00 and the price of a donut is $4.00. In 2018, the relative price of a paperback novel is Between 2013 and 2018, the nominal value of Maria's wage Monetary neutrality is the proposition that a change in the money supply variables. ' and the real value of her wage nominal variables and real