"As interest rates rise, the curve shifts resulting in a(n) in the price level and a(n) in Real GDP"

AD; leftward; decrease; decrease

Explanation:

As interest rates rise, the AD curve shifts leftward resulting in a decrease in the price level and a decrease in Real GDP.

Higher interest rates increase the cost of borrowing for firms an individuals alike. As the rates rise therefore, less people and firms will use more debt funding for consumption and investment respectively which are 2 components of Aggregate Demand. This will lead to the AD reducing in quantity and therefore shifting to the Left. As it does so the new intersection with the Aggregate Supply curve will be at a lower price level and as the price level decreases, so will REAL GDP as deflation(lower price level) will lead to the Economy shrinking in real terms.

answer is a

explanation: