A country experiences a significant increase in the income levels of its trading partners. How would this likely impact the aggregate demand and supply model for this country? Choose the most accurate representation of the expected economic change.

When a country's trading partners experience a significant increase in income levels, it usually means they will buy more goods and services. This increase in demand for exports from the country will raise the aggregate demand within that country. As aggregate demand rises, businesses may need to produce more to meet this demand, which can lead to an increase in aggregate supply as they hire more workers and invest in more resources. For example, if a country exports a lot of cars and its trading partners can now afford to buy more cars, the car manufacturers will produce more, leading to a shift in both the aggregate demand and supply curves to the right. Overall, this situation can lead to economic growth as the country produces and sells more.