Question

What is deflation? a. A lack of economic growth. c. A decrease in the general price level. b. A reduction in the supply of money. d. A decrease in a nation’s standard of living.

Answer 1

ans is: a decrease in the general price level

Answer 2

Deflation is a term in economics and it describes an overall drop in price of goods. The correct answer is c. A decrease in the general price level.