Aggregate demand is used to show the long run effects of price on equilibrium, but how is price a long run concept and interest a short run one ?. I see price fluctuating on a daily basis, interest rates on the other hand fluctuate on a quarterly basis.
Forgive the simplicity of my doubt, I'm an Econ undergrad student. But these concepts were never clearly elucidated in class so I thought of taking to the internet where experts could help clear my doubts.
