Which of the following statements accurately describe the interactions between aggregate supply and aggregate demand in determining equilibrium output and price levels? Select all that apply.

In economics, aggregate supply and aggregate demand are two important concepts that help us understand how prices and output levels in an economy are determined. Aggregate demand refers to the total demand for goods and services in an economy at a given overall price level, while aggregate supply is the total supply of goods and services that producers are willing to sell at that price level. The point where aggregate supply and aggregate demand meet is called the equilibrium, where the quantity of goods supplied equals the quantity demanded, determining both the equilibrium output and price level. For example, if there is an increase in consumer spending, aggregate demand shifts to the right, leading to higher prices and output until a new equilibrium is reached. Conversely, if production costs rise, aggregate supply may shift to the left, resulting in higher prices and lower output.