In the AD and Solow growth curve model, increased spending growth causes

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In the AD and Solow growth curve model, increased spending growth causes higher inflation rate but no change in the real growth rate. This is because increased spending leads to higher demand for goods and services, which pushes up prices. However, the model assumes that the economy has a fixed potential output level in the long run, and increased spending cannot permanently increase the real growth rate beyond this level.

In the AD and Solow Growth Curve Model, Increased Spending