In the context of aggregate demand and supply analysis, when the aggregate demand curve shifts to the right due to increased consumer confidence, this typically leads to a higher ______ level and increased output in the short run.

When the aggregate demand curve shifts to the right, it means that consumers are willing to buy more goods and services at every price level. This increase in demand often happens when people feel more confident about their jobs and the economy, leading them to spend more money. As a result, businesses respond to this higher demand by producing more goods, which can lead to an increase in the overall price level in the short run. For example, if a popular new product is released and consumers are excited about it, this can cause an uptick in spending, pushing both prices and output higher. Therefore, we can say that this shift typically leads to a higher price level and increased output in the short run.