Final answer:
A shift to the right of the Aggregate Demand Curve in an AD/AS diagram indicates an increase in both GDP and the price level, reflecting economic growth and potential inflation.
Step-by-step explanation:
When the Aggregate Demand Curve (AD) shifts to the right in the AD/AS diagram, it represents an increase in the total demand for goods and services within an economy. This shift to the right suggests that two main things will go up: the Gross Domestic Product (GDP) and the price level. An increase in GDP is a sign that the economy is growing, often translating into more jobs and higher incomes. Conversely, the price level rising indicates that there is inflation, as more demand can lead to higher prices for goods and services. In the context of international trade, an increase in foreign demand, for instance from higher European Union (EU) growth, would increase demand for U.S. exports. This would decrease the trade deficit and lead to higher employment to meet the increased demand for production of exports.