What is the difference between deflation and disinflation?
A)Deflation is used in microeconomics, whereas disinflation is used in macroeconomics.
B)Deflation refers to changes in expected inflation, while disinflation refers to changes in the actual rate of inflation.
C)Deflation refers to a decrease in the overall price level, or negative inflation, while disinflation simply refers to a decrease in the inflation rate.
D)is no difference between these two concepts; they are synonyms.

Question

Quizplus · Accepted Answer

Deflation refers to a decrease in the overall price level, or negative inflation, whereas disinflation simply refers to a decrease in the inflation rate. In other words, deflation implies that prices are actually falling, while disinflation means that the rate of price increases has slowed down.

What Is the Difference Between Deflation and Disinflation