Classical dichotomy
THE IDEA, ATTRIBUTED TO CLASSICAL/PRE-KEYNESIAN ECONOMICS, THAT REAL VARIABLES (OUTPUT AND REAL INTEREST RATES) AND NOMINAL VARIABLES (MONEY VALUE OF OUTPUT AND THE INTEREST RATE) CAN BE ANALYZED SEPARATELY
Dichotomous market theory
In macroeconomics, the classical dichotomy is the idea, attributed to classical and pre-Keynesian economics, that real and nominal variables can be analyzed separately. To be precise, an economy exhibits the classical dichotomy if real variables such as output and real interest rates can be completely analyzed without considering what is happening to their nominal counterparts, the money value of output and the interest rate.