The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.
Tanisha divides all of her income between spending on puzzle books and macchiatos. In 2016, she earned an hourly wage of $28.00, the price of a puzzle book was $7.00, and the price of a macchiato was $4.00.
Which of the following give the real value of a variable? Check all that apply.
a. The price of a puzzle book is $7.00 in 2016.
b. Tanisha's wage is 7 macchiatos per hour in 2016.
c. The price of a puzzle book is 1.75 macchiatos in 2016.