Question

What is the difference between inflation and deflation

Answer 1

Inflation can result from rising demand and boosts the value of money. Deflation can result from falling demand and reduces the value of money.

Step-by-step explanation:

edge 2022

Answer 2

Inflation refers to rise in price of goods and services.

Deflation refers to decrease in price of goods and services.

Step-by-step explanation:

Inflation:

Inflation refers to rise in price of goods and services.

This occurs as a result of increase in demand of goods, due to which it's availability decreases and as a result price increases.

Deflation;

Deflation refers to decrease in price of goods and services.

This occurs as a result of decrease in demand of goods, due to number of goods available in the market increases and as a result price decreases.