A sustained decrease in the price level is known as
A) inflation.
B) disinflation.
C) reflation.
D) deflation.

Question

Quizplus · Accepted Answer

A sustained decrease in the price level is known as deflation. Inflation refers to a sustained increase in the price level, while disinflation refers to a decrease in the rate of inflation, and reflation refers to government policies aimed at stimulating economic growth by increasing aggregate demand through the use of monetary or fiscal policy.

A Sustained Decrease in the Price Level Is Known as