Interest rates fall.Instructions: Grab either the AD or AS curve and drag and drop it to a new position to represent the resulting shift in AD or AS.

When interest rates fall, it generally means that the cost of borrowing decreases. This can lead to an increase in spending by businesses and consumers, as they can now afford to take on more debt. This increase in spending can lead to an increase in the overall demand for goods and services in the economy.

Here are the steps to represent this situation:

1. Identify the Aggregate Demand (AD) curve on your graph. This curve shows the total demand for goods and services in the economy at different price levels.

2. Since a fall in interest rates leads to an increase in demand, you will need to shift the AD curve to the right. This represents an increase in aggregate demand.

3. Click on the AD curve and drag it to the right to its new position. The new position of the curve represents the new level of demand in the economy after the fall in interest rates.

Remember, the Aggregate Supply (AS) curve remains unchanged as the fall in interest rates does not directly affect the total output of goods and services in the economy.