The property of the long-run model known as the classical dichotomy is best described by the statement

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The classical dichotomy refers to the theoretical separation of real and nominal variables in the economy, suggesting that real variables (like output, employment, real interest rates) can be determined without knowledge of nominal variables (like the money supply, inflation, and nominal prices). However, nominal variables may depend on real variables. This concept is foundational in classical economics, emphasizing that in the long run, the economy's production capacity (real variables) is unaffected by monetary factors (nominal variables).

The Property of the Long-Run Model Known as the Classical