b. The unemployment rate has increased over the past quarter. In response, the Federal Reserve has lowered the real Aggregate Demand interest rate. Use the graph to show this change. Price level AD Quantity of output17 of 17 Aggregate Demand and Aggregate Supply - End of Chapter Problem a. Over the past quarter, the inflation rate has risen from 2% to 4%. In response, the Federal Reserve has raised the real Aggregate Demand interest rate. Use the graph to show this change. Price level AD Quantity of output