How would I draw an aggregate supply/demand diagram to show: The Bank of Canada increases interest rates?
No, interest rate changes don’t affect aggregate supply. They affect aggregate demand through changes in consumption (goes down because consumers save more), investment (goes down because the return on investment has relatively fallen compared to saving), and net exports (goes down because of capital inflows attracted by the higher rate of return on investments in Canada). In the long run, interest rate changes would affect AS, through the effect the change had on investment (lower interest rates > increased investment > increased capital stock > increased productive capacity > increased output) but that would take a long time.
