<p>I am studying the classing model. And I have a basic question</p>
<blockquote>
<p>what are the units of the following variables( monetary or real?)
Inflation rate (<span class="math-container">$\pi$</span>), wage (w), Labor supply N, consumption C, investment I, government spending G, capital K, money supply M, bond supply B, <span class="math-container">$(M+B)/p$</span>, and (<span class="math-container">$(M+B)/p)\pi$</span></p>
</blockquote>
<p>What I know is that</p>
<p>(M,B,p,w) are nominal (monetary) variables,</p>
<p>(C,I,Y,N,K,w/p, G) are real variables.</p>
<p>But what about <span class="math-container">$(M+B)/p$</span>, and (<span class="math-container">$(M+B)/p)\pi$</span>, inflation rate <span class="math-container">$\pi$</span> ?</p>
<p>I have no idea for these variables.</p>

CC BY-SA 4.0
2022-07-25T09:04:57.263Z
Think about why w/p is a real variable. Can you apply the same reasoning to (M+B)/p?
BrsG
CC BY-SA 4.0
2022-07-25T10:45:53.367Z
Then, similarly, they are also real variables. Well, what about inflation rate $\pi$?
studentp
<macroeconomics><self-study><classical-economics>
Real or monetary values? In the context of Classic model
studentp
# Real or monetary values? In the context of Classic model

(Asked by: username_0 on 2022-07-24)

I am studying the classing model. And I have a basic question

> what are the units of the following variables( monetary or real?)
> Inflation rate ($\pi$), wage (w), Labor supply N, consumption C, investment I, government spending G, capital K, money supply M, bond supply B, $(M+B)/p$, and ($(M+B)/p)\pi$

What I know is that

(M,B,p,w) are nominal (monetary) variables,

(C,I,Y,N,K,w/p, G) are real variables.

But what about $(M+B)/p$, and ($(M+B)/p)\pi$, inflation rate $\pi$ ?

I have no idea for these variables.

**Tags:** macroeconomics, self-study, classical-economics
> **Comments:**
> **username_1**: Think about why w/p is a real variable. Can you apply the same reasoning to (M+B)/p?  
> **username_0**: Then, similarly, they are also real variables. Well, what about inflation rate $\pi$?  

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## 0 answers

