According to the AD and Solow growth curve model, real shocks affect the real GDP growth rate and aggregate demand shocks do not affect the real GDP growth rate.

Question

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In the AD and Solow growth curve model, real shocks, such as changes in technology or resources, affect the real GDP growth rate, while aggregate demand shocks primarily affect the price level, not the long-term growth rate.

According to the AD and Solow Growth Curve Model, Real