Question: 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

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

Output, prices and the nominal interest rate rise.

None of the above/below.

Output and prices rise; the nominal interest rate falls.

Output and prices fall; the nominal interest rate rises.

Output, prices and the nominal interest rate fall.

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