In the Basic Model That Includes the AD and LRAS

Multiple Choice

In the basic model that includes the AD and LRAS curves only, increased spending growth causes:

A) a lower inflation rate, but no change in the real growth rate.
B) a higher inflation rate, but no change in the real growth rate.
C) a lower real growth rate, but no change in the inflation rate.
D) a higher real growth rate, but no change in the inflation rate.