Assume that an economy is initially in long-run equilibrium. explain the short-run effect of monetary policy that causes an increase in interest rates. as a result of higher interest rates, thea. aggregate demand curve will shift left. b.aggregate demand curve will shift right. c.short-run aggregate supply curve will shift left. d.long-run aggregate supply curve will shift left. the new equilibrium will bea. where the new aggregate demand curve intersects the originallong-run aggregate supply curve. b.where the new aggregate demand curve intersects the original aggregate demand curve. c.where the new aggregate demand curve intersects the originalshort-run aggregate supply curve. d.where the original aggregate demand curve intersects the original short-run aggregate supply curve.