In the long run, how does an increase in aggregate demand affect the economy, assuming aggregate supply is perfectly inelastic?

When aggregate demand increases and aggregate supply is perfectly inelastic, it means that the total supply of goods and services in the economy cannot change in the short term. This situation often leads to higher prices because there are more people wanting to buy the same amount of goods. For example, if many people suddenly want to buy cars but the number of cars produced remains the same, car prices will rise. In the long run, if this higher demand continues, it can lead to inflation, where the overall price level in the economy increases. However, the quantity of goods produced does not change, so the economy may not grow in terms of output, but rather just in terms of prices.