Since the end of World War II,the U.S.has almost always had rising prices and an upward trend in real GDP.This can be explained
A)only by technological progress.
B)only by money supply growth.
C)by technological progress and money supply growth.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The combination of technological progress and money supply growth has contributed to the long-term trend of rising prices and real GDP in the US since World War II. Technological progress leads to increased productivity and output, which puts downward pressure on prices. However, growth in the money supply can lead to inflation and higher prices, so the two factors have worked in opposing directions to shape the economy. Overall, the net effect has been positive for real GDP growth, but with some inflationary pressures.

Since the End of World War II,the U