How does an increase in aggregate demand generally affect the unemployment rate in the short run?

When aggregate demand increases, it means that people and businesses want to buy more goods and services. This higher demand encourages companies to produce more, which often requires hiring additional workers. As businesses expand their workforce to meet this demand, the unemployment rate usually decreases because more people are finding jobs. For example, if a car manufacturer sees a rise in orders, it may hire more workers to build those cars, reducing unemployment in the area. However, this effect is typically seen in the short run, as the economy may adjust over time in different ways.