In the short run, an increase in aggregate demand (AD) with a fixed aggregate supply (AS) will likely result in: A) Lower prices and higher output B) Higher prices and higher output C) Lower prices and lower output D) Higher prices and lower outpu8) Assume LRAS is fixed for this question. Tucker owns a factory that produces bicycles. AD increases and this leads to higher price level. What do we expect to happen in the short run according to what we learn in class? A) He will sell at higher prices, but he will also pay higher wages, so he is no better or worse off than he was before the inflation B) His labor costs will be unchanged, and he will increase his quantity supplied C) He will produce fewer units because his labor costs have gone up D) His supply curve will shift to the right