During an economic expansion in the dynamic AD-AS model, how do aggregate demand and aggregate supply interact to affect price levels?

• A. Both aggregate demand and supply increase, keeping price levels relatively stable.
• B. Aggregate demand decreases while aggregate supply increases, leading to lower price levels.
• C. Aggregate supply increases faster than aggregate demand, leading to lower price levels.
• D. Aggregate demand increases faster than aggregate supply, leading to higher price levels.

Answer: (A)