Final answer:
The increase in the rate of technology progress can lead to faster long-run economic growth without necessarily causing a rise in the inflation rate. This is because such growth can stem from enhanced productivity and increased economic capacity.
Step-by-step explanation:
When the rate of technology progress increases, it typically results in faster long-run economic growth. Faster economic growth does not necessarily lead to higher inflation. In fact, it can be associated with stable or falling inflation rates if the growth is due to rising productivity rather than simply increased aggregate demand.
In the neoclassical model of economics, long-term growth that raises the economy's potential does not increase the inflation rate. Instead, it shifts the long-run aggregate supply (LRAS) curve to the right, indicating a greater capacity for the economy to produce goods and services without pushing up the price level.
Therefore, the correct answer in this case would be that the inflation rate does not necessarily rise, and the economic growth rate increases. This situation does not match any of the provided options exactly, as it dissociates higher economic growth from an automatic increase in the inflation rate, contrary to the implication in options A and D.