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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. Rosa spends all of her money on magazines and beignets. In 2013, she earned $12.00 per hour, the price of a magazine was $6.00, and the price of a beignet was $1.00. Which of the following give the nominal value of a variable? Check all that apply. [3 Rosa's wage is $12.00 per hour in 2013. C] The price of a beignet is 0.1? magazines in 2013. [j The price of a beignet is $1.00 in 2013. Which of the following give the real value of a variable? Check a\" thatapply. C] Rosa's wage is 12 beignets per hour in 2013. C] The price of a magazine is $6.00 in 2013. [j The price of a magazine is 6 beignets in 2013. Suppose that the Fed sharply increases the money supply between 2013 and 2018. In 2018, Rosa's wage has risen to $24.00 per hour. The price of a magazine is $12.00 and the price of a beignet is $2.00. Which of the following give the real value of a variable? Check all that apply. Cl Rosa's wage is 12 beignets per hour in 2013. El The mice of a magazine is $6.00 in 2013. C] The pn'ce of a magazine is 6 beignets in 2013. Suppose that the Fed sharply increases the money supply between 201.3 and 2018. In 2018, Rosa's wage has risen to $24.00 per hour. The price of a magazine is $12.00 and the price of a beignet is $2.00. In 2018, the relative price of a magazine is V . Between 2013 and 2018, the nominal value of Rosa's wage V , and the real value of her wage V . Monetary neutrality is the proposition that a change in the money supply V nominal variables and V real variables