How does an increase in aggregate demand affect GDP in the context of achieving full employment equilibrium?

When aggregate demand increases, it means that people and businesses want to buy more goods and services. This rise in demand can lead to higher production levels because companies need to make more to keep up with what customers want. As businesses produce more, they often need to hire additional workers, which helps reduce unemployment and can bring the economy closer to full employment equilibrium. For example, if a car manufacturer sees an increase in orders, they might hire more workers to produce more cars, which increases the overall Gross Domestic Product (GDP). In this way, higher aggregate demand can help boost economic activity and support a healthy job market.