Consider the AD/AS framework seen in lectures. Say that, given the recent data on jobs added to the economy, firms feel confident that the economy will improve, and as a result investment in the economy increases. In theshort runequilibrium

1. Output and prices rise; the nominal interest rate falls.
2. Output, prices and the nominal interest rate rise.
3. Output, prices and the nominal interest rate fall.
4. Output and prices fall; the nominal interest rate rises.
5. None of the above/below.