Deflation is
A)a persistent and ongoing falling price level.
B)always accompanied by a decrease in the natural unemployment rate.
C)unknown in the twenty- first century.
D)always accompanied by an increase in the natural unemployment rate.
E)a one- time fall in the price level.

Question

Quizplus · Accepted Answer

Deflation is a persistent and ongoing fall in the price level. It is not a one-time event, nor is it unknown in the twenty-first century. Deflation is also typically accompanied by a decrease in aggregate demand, which can lead to an increase in unemployment, making choice D incorrect.

Deflation Is