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

Question

Quizplus · Accepted Answer

According to the classical dichotomy, real variables such as unemployment are determined by non-monetary factors and are not influenced by changes in the money supply or nominal variables such as the price level and nominal interest rates. Therefore, option A, unemployment, is not influenced by monetary factors.

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