According to the AD-AS model,if the economy is initially at its long-run potential growth rate,then a temporary increase in the growth rate of investment spending will cause:

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According to the AD-AS model, a temporary increase in the growth rate of investment spending would cause a shift in the aggregate demand (AD) curve to the right, resulting in an increase in both the inflation and real growth rates in the short run. However, in the long run, the economy will adjust to the new equilibrium with higher prices and the same potential output level, which means there would be an increase in the inflation rate, but no effect on the real growth rate.

According to the AD-AS Model,if the Economy Is Initially at Its