What does an increase in aggregate demand typically lead to in the short run, assuming aggregate supply remains constant?

When aggregate demand increases while aggregate supply stays the same, it usually leads to higher overall prices and increased output in the short run. This happens because more people want to buy goods and services, so businesses respond by producing more to meet that demand. However, since the supply hasn't changed, the increased demand can push prices up as companies have to charge more for their products. For example, if a popular toy becomes very sought after during the holiday season, stores may raise prices because more families want to buy it. This situation can lead to inflation, where the cost of living rises as everything gets more expensive.