Which of the following is the best definition of disinflation?
A)A reduction in the inflation rate
B)A reduction in the overall price level of the economy
C)A surprisingly high rate of inflation
D)of these

Question

Quizplus · Accepted Answer

Disinflation refers to a reduction in the rate of inflation, not necessarily a decrease in prices overall. Option B refers to deflation, which is different from disinflation. Option C is incorrect as disinflation refers to a decrease in inflation, not a surprisingly high rate of inflation. Option D is not a valid answer as it includes multiple options.

Which of the Following Is the Best Definition of Disinflation