An increase in aggregate demand in the classical range of the aggregate supply curve will

A) increase the price level,but not affect the real domestic output.
B) increase real domestic output,but not affect the price level.
C) decrease both real domestic output and the price level.
D) increase both real domestic output and the price level.

Classical Range

Pertains to the portion of the aggregate supply curve where output is influenced by changes in price level, assuming full employment and fixed resource prices.

Aggregate Supply Curve

A graphical representation showing the relationship between the total quantity of goods and services that firms in an economy are willing to produce at different price levels.

Price Level

An index or average of the combined prices of goods and services in an economy at a specific time, reflecting the cost of living and inflation.