The following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand shifts to the right from AD1AD1to AD2AD2, causing the quantity of output demanded to rise at all price levels. For example, at a price level of 140, output is now $400 billion, where previously it was $300 billion.

170 160 150 140 130 PRICE LEVEL (CPI) 120 ADZ 110 AD 100 80 100 200 300 400 500 600 700 800 REAL GDP (Billions of dollars)