Which of the following will reduce the price level and raise real output?
A) an adjustment of prices to equilibrium
B) an increase in wage rates
C) the short-run aggregate supply curve becoming steeper
D) technical progress

Question

Quizplus · Accepted Answer

Technical progress can increase productivity and efficiency, leading to lower costs for businesses to produce goods and services. This can result in a decrease in the price level and an increase in real output. The other choices may not necessarily lead to a decrease in the price level and may have mixed effects on real output.

Which of the Following Will Reduce the Price Level and Raise