Other things the same,continued increases in technology lead to
A)continued increases in the price level and real GDP.
B)continued decreases in the price level and real GDP.
C)continued increases in real GDP and continued increases in the price level.
D)continued increases in real GDP and continued decreases in the price level.

Question

Quizplus · Accepted Answer

Continued increases in technology lead to increased productivity, leading to increased real GDP. As more goods and services are produced, the price level may decrease due to increased competition and efficiency in production. However, there may be new products and services created that cause the price level to increase somewhat, but not enough to offset the gains from increased productivity. Therefore, the best choice is D, which reflects increases in real GDP and decreases in the price level.

Other Things the Same,continued Increases in Technology Lead to