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 increases productivity, which leads to an increase in the supply of goods and services. This increase in supply causes a reduction in prices and an increase in real output.

Which of the Following Will Reduce the Price Level and Raise