An increase in aggregate supply increases the real domestic output and reduces the price level effects from an increase in aggregate demand.

Name: An increase in aggregate supply increases the real domestic output and reduces the price level effects from an increase in aggregate demand.
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An increase in aggregate supply shifts the supply curve to the right, leading to higher output and lower prices, which can offset the inflationary effects of increased aggregate demand.

An Increase in Aggregate Supply Increases the Real Domestic Output