According to the AD and Solow growth curve model, a shock to aggregate demand has an effect on the inflation rate but no effect on the real growth rate.

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According to the AD and Solow growth curve model, a shock to aggregate demand affects the price level and the inflation rate in the short run, but has no effect on the long-run potential output or real growth rate. This is because the model assumes that the economy will eventually return to its long-run equilibrium, where the growth rate is determined by factors such as technology, labor supply, and capital accumulation, regardless of short-term fluctuations in demand.

According to the AD and Solow Growth Curve Model, a Shock