Deflation is defined as

A. a decrease in the inflation rate.
B. a fall in the average price level.
C. a period during which the average price level is low.
D. a low rate of change in average prices.

Ans: B. a fall in the average price level.

Economics

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How do external costs prevent a competitive market from allocating resources efficiently?

What will be an ideal response?

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Over the long run, the U.S. economy:

a. has grown dramatically. b. has shown nominal growth. c. has remained more or less stagnant. d. has not produced enough capital goods.

Economics