What is the correct term for a sustained decrease in the general price level within an economy?
A)Money illusion
B)Depreciation
C)Inflation
D)Deflation

Question

Quizplus · Accepted Answer

Deflation is the correct term for a sustained decrease in the general price level within an economy.
Key Takeaway: The opposite of deflation is inflation, a sustained increase in the general price level within a given economy. Always keep in mind that an increase in the price of only one good would not necessarily signal inflation. Rather, it could be part of a broader societal increase that would be inflation. It is always important to look at the economy as a whole.

What Is the Correct Term for a Sustained Decrease in the General