The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.
Juanita spends all of her money on comic books and donuts. In 2011, she earned $14.00 per hour, the price of a comic book was $7.00, and the price of a donut was $2.00.
Which of the following give the nominal value of a variable? Check all that apply.

Juanita's wage is $14.00 per hour in 2011.
Juanita's wage is 2 comic books per hour in 2011.
The price of a donut is $2.00 in 2011.
Which of the following give the real value of a variable? Check all that apply.

Juanita's wage is 7 donuts per hour in 2011.
Juanita's wage is $14.00 per hour in 2011.
The price of a comic book is 3.5 donuts in 2011.
Suppose that the Fed sharply increases the money supply between 2011 and 2016. In 2016, Juanita's wage has risen to $28.00 per hour. The price of a comic book is $14.00 and the price of a donut is $4.00.
In 2016, the relative price of a comic book is .
Between 2011 and 2016, the nominal value of Juanita's wage , and the real value of her wage .
Monetary neutrality is the proposition that a change in the money supply nominal variables and real variables.