What Is the Effect of Technological Progress and Increases in the Money

question 211

Multiple Choice

What is the effect of technological progress and increases in the money supply on prices in the long run?

• A)Both make the price level rise.
• B)Both make the price level fall.
• C)Technological progress makes the price level rise, while increases in the money supply make prices fall.
• D)Technological progress makes the price level fall, while increases in the money supply make prices rise.

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Definitions:

Gray Market Activities

The trade of legal goods through unauthorized, unofficial, or unintended distribution channels.

Product Standardization

The process of setting uniform characteristics for a particular product or products, which can help reduce costs and increase quality.

Weight-To-Volume Ratio

A measure that compares the weight of an object to its volume, often used in shipping and material science.

Supply-Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.