Question

The price level is a__________.

a. real variable.
b. dichotomous variable
c. nominal variable.
d. relative variable.

Answer 1

c. nominal variable

Step-by-step explanation:

Nominal variable is a variable that hasn't been adjusted for inflation. E.g. price level

Nominal variable = real variable + inflation rate

Real variable are variables that have been adjusted for inflation rate. E.g. real GDP

Real variable = nominal variable - inflation rate

Relative variable is the value of a variable in terms of another variable. E.g. comparative advantage

Dichotomous variable are variables that can take on either two values when measured e.g. gender

I hope my answer helps you.