2 Classical dichotomy In the kingdom of Guttenberg, they've decided it's a good idea to use more currency bills so as to give work to the printing industry. Hence, overnight there is an announcement that every price will increase by a factor of 2: things that were $1 are now $2 and things that were $10 are now $20. Which of the following will change? 1. Output, Y 2. The real wage rate 3. The interest rate 4. The price level P 5. The nominal rental rate of capital R 2 Classical dichotomy In the kingdom of Guttenberg, they've decided it's a good idea to use more currency bills so as to give work to the printing industry. Hence, overnight there is an announcement that every price will increase by a factor of 2: things that were $1 are now $2 and things that were $10 are now $20. Which of the following will change? 1. Output, Y 2. The real wage rate 3. The interest rate 4. The price level P 5. The nominal rental rate of capital R