(1st incident) When interest rate rises, cost of borrowing rises, private consumption expenditure and investment expenditure decreases, aggregate demand decreases, aggregate demand curve shifts to the left, (2nd incident) When people migrate to other countries, working population decreases, long run aggregate supply decreases, long run aggregate supply curve shifts to the left, If the decrease in AD is more that the decrease in LRAS, Price level decreases, full-employment aggregate output decreases.

Re-order change in AD + AS analysis

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