... by the students Fortunately, Parkin s chapter is not at all like these other weak attempts Parkin shows the students how the schools relate to each other and presents an incredibly exciting chapter. .. addition, the demand for labor decreases The decrease in the demand for loanable funds means the real interest rate falls According to RBC theory, the fall in the real interest rate decreases the supply... level, the money wage rate increases and the SAS curve shifts leftward If the increase in the price level is fully anticipated, then the money wage rate rises by the same percentage so that the