The rise in price level is ultimately caused by expansion of the money supply. This disproportionality causes a decrease in purchasing power per unit of currency, i.e. rise in nominal prices.
Technology counts as goods and services.
That is controversial. Milton Friedman has built a strong empirical case that the money supply actually contracted slightly relative to goods and services during the 1920s. Join the network for free. The Freedom Network is a service of The Henry Hazlitt Foundation . Click here to make a donation. .