Consider that the economy is initially at full employment equilibrium. If Interest rates in the economy falls: O Aggregate demand increases, the equilibrium price level falls, and the equilibrium level of GDP increases. O Aggregate demand decreases, the equilibrium price level falls, and the equilibrium level of GDP increases. O Aggregate demand decreases, the equilibrium price level rises, and the equilibrium level of GDP decreases. Aggregate demand increases, the equilibrium price level rises, and the equilibrium level of GDP increases.
