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. Sofia divides all of her income between spending on puzzle books and lattes. In 2017, she earned an hourly wage of $28.00, the price of a puzzle book was 7.00, and the price of a latte was $4.00. Which of the following give the real value of a variable? Check all that apply. [ The price of a puzzle book is $7.00 in 2017. [0 sofia's wage is 7 lattes per hour in 2017. [ sofia's wage is $28.00 per hour in 2017. Which of the following give the nominal value of a variable? Check s/l that spply. [J The price of a latte is 0.57 puzzle books in 2017. [J sofia's wage is $28.00 per hour in 2017. sofia's wage is 4 puzzle books per hour in 2017. Which of the following give the meminal value of a variable? Check all that apply. [ The price of a latte is 0.57 puzzle books in 2017. [J sofia's wage is $28.00 per hour in 2017. [J sSofia's wage is 4 puzzle books per hour in 2017. Suppose that the Fed sharply increases the money supply between 2017 and 2022, In 2022, Sofia's wage has risen to $56.00 per hour. The price of a puzzle book is 14.00 and the price of a latte is 8.00. In 2022, the relative price of a puzzle book is h A Between 2017 and 2022, the nominal value of Sofia''s wage w , and the real value of her wage b A Monetary neutrality is the proposition that a change in the money supply w nominal variables and w rezl variables