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 Kyoko spends all of her money on magazines and mandarins. In 2013 she earned $18.00 per hour, the price of a magazine was $9.00, and the price of a mandarin was $2.00 Which of the following give the nominal value of a variable? Check all that apply. Kyoko's wage is 2 magazines per hour in 2013. Kyoko's wage is $18.00 per hour in 2013. The price of a mandarin is 0.22 magazines in 2013. Which of the following give the real value of a variable? Check all that apply. The price of a magazine is $9.00 in 2013 Kyoko's wage is o mandarins per hour in 2013, Kyoko's wage is $18.00 per hour in 2013. Suppose that the Bank of Canada sharply increases the money supply between 2013 and 2018. In 2018, Kyoko's wage has risen to $36.00 per hour. The price of a magazine is $18.00 and the price of a mandarin is $4.00 In 2018, the relative price of a magazine is Between 2013 and 2018, the nominal value of Kyoko's wage and the real value of her wage Monetary neutrality is the proposition that a change in the money supply Variables nominal variables and real