Aggregate Demand$-$Aggregate Supply Model Practice Problems ECO $221$

For each of the following situations show what happens to Aggregate Demand and$/$or Short$-$run Aggregate Supply in the short run $($shifts$).$ Indicate what happens $[$Increase or Decrease$]$ to the price level $($inflation rate$),$ Real GDP $($Y$),$ and the unemployment rate $($U$).$

Due to an economic slowdown, the Federal Reserve has reduced key interest rates.

Improvements in technology has increased the productivity of resources.