Deflation is best described as when
A) all prices in the economy fall.
B) the prices of some goods rise and prices of some goods fall,but more goods have price increases than decreases.
C) the prices of some goods rise and prices of some goods fall,but fewer goods have price increases than decreases.
D) the overall level of prices of goods falls.
E) the overall level of prices of goods rises.

Question

Quizplus · Accepted Answer

Deflation is a decrease in the overall level of prices of goods, meaning that all or most prices in the economy fall. Therefore, option D is the correct choice.

Deflation Is Best Described as When