Answer the following questions in complete sentences and give a thorough response.

1. Assume that recent pessimistic economic projections caused businesses to reduce expansion plans. What do you think will happen to aggregate demand, aggregate supply, and the overall level of the interest rates?
2. Over the last six months, the inflation rate doubled. What do you think will happen to aggregate demand, aggregate supply, and the overall level of the interest rates?
3. Assume that the government decided to stimulate by increasing its spending. What do you think will happen to aggregate demand, aggregate supply, and the overall level of the interest rates?