If an economy experiences a sudden increase in aggregate demand, which of the following outcomes is most likely to occur in the short run?

When an economy experiences a sudden increase in aggregate demand, it means that people and businesses want to buy more goods and services than before. In the short run, this usually leads to higher prices because there are not enough goods available to meet the increased demand. For example, if many people suddenly decide to buy more cars, car manufacturers might struggle to produce enough vehicles quickly, causing prices to rise. Additionally, businesses may hire more workers to try to keep up with the demand, which can lead to lower unemployment. Overall, in the short run, we can expect higher prices and increased economic activity as businesses respond to the surge in demand.