Assume that your nominal wage was fixed at $15 an hour, and the price index rose from 100 to 105. In this case, your real wage has:

A negative supply shock often results in:

a) a leftward shift of the AD curve. b) an increase in the aggregate price level and a decrease in aggregate output. c) no change in the price level. d) a drop in the unemployment levels.

An increase in the interest rate

A) lowers the present value of future revenue. B) increases the present value of future revenue. C) has no effect on the present value of future revenue. D) shifts the demand curve for capital leftward.