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- The central bank decided to raise interest rates when it wanted to reduce aggregate demand to fight inflation. How does an increase in interest rates reduce aggregate demand?How will the age of the existing capital stock affect aggregate demand?How have improvements in computer technology affected production possibilities and the long run aggregate supply curve?
- I need help please. I am not understanding this question. What is the relationship between interest rate, aggregate income, and price level?What are the major factors that will affect short-run aggregate supply and long-run aggregate supply?What are the major factors that determine investment, and what impact does each have on aggregate demand?