A decrease in the average level of prices of goods and services is
A)Deflation.
B)Recession.
C)Depression.
D)Inflation

Question

Quizplus · Accepted Answer

Deflation refers to a decrease in the average level of prices of goods and services. This is the opposite of inflation, which is an increase in the average level of prices. Recession and depression refer to a decline in economic activity, while neither of which necessarily implies a decrease in prices.

A Decrease in the Average Level of Prices of Goods