According to the classical dichotomy, which of the following is determined by monetary factors?
A)The real wage
B)The nominal wage
C)The real interest rate
D)Real GDP

Question

Quizplus · Accepted Answer

According to the classical dichotomy, nominal variables such as the nominal wage are determined by monetary factors, while real variables such as the real wage and real GDP are determined by non-monetary factors such as technology and resources. Therefore, the nominal wage is the only option that is determined by monetary factors.

According to the Classical Dichotomy, Which of the Following Is