If aggregate demand shifts from AD2 to AD4,

A) both output and the price level will rise.
B) output will rise and the price level will fall.
C) output will rise and the price level will remain the same.
D) both output and the price level will fall.
E) output will fall and the price level will rise.

When aggregate demand shifts from AD2 to AD4, it indicates an increase in the total demand for goods and services in an economy. This increase in demand typically leads to higher output as producers increase production to meet the higher demand, and it also leads to higher prices because the increased demand puts upward pressure on prices.