214k views
1 vote
If the cost of a typical market basket in 2019 is 400 and the cost of a typical market basket in 2020 is 390, then during this period the economy is undergoing:

User MHM
by
7.9k points

2 Answers

3 votes

Answer:

deflation.

Step-by-step explanation:

User Aidenhjj
by
8.9k points
6 votes

If the cost of a typical market basket in 2019 is 400 and the cost of a typical market basket in 2020 is 390, then during this period the economy is undergoing deflation.

To add, deflation is a contraction in the supply of circulated money within an economy, and therefore the opposite of inflation.

User Daniel Dreibrodt
by
8.2k points