According to the classical dichotomy,which of the following is not influenced by monetary factors?
A)the price level
B)real GDP
C)nominal interest rates
D)All of the above are correct.

Question

Quizplus · Accepted Answer

According to the classical dichotomy, real GDP is not influenced by monetary factors and is determined solely by factors such as technology, labor, and capital. In contrast, the price level and nominal interest rates are influenced by monetary factors such as changes in the money supply and interest rate policy. Therefore, choice B is the correct answer as it is not influenced by monetary factors.

According to the Classical Dichotomy,which of the Following Is Not