An increase in aggregate demand in the long run will most likely result in:

A) a decrease in price and output levels.
B) an increase in price and output levels.
C) an increase in the price level and a decrease in output.
D) a decrease in the price level and an increase in output.
E) an increase in the price level but no change in output.

Price Level

The summarised price average of every good and service within the economic domain.

Aggregate Demand

Full economic demand for all types of goods and services, calculated at a unified price level throughout a chosen period.

Output Levels

Output levels refer to the quantity of goods and services produced by an economy or firm during a specific period.