Deflation results in ever-decreasing prices, creating a positive result for consumers, but putting pressure on everyone in the supply chain to lower costs.

Question

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Deflation leads to lower prices, which can benefit consumers by increasing their purchasing power. However, it pressures producers, suppliers, and retailers to reduce costs to maintain margins, which can lead to reduced investment, cost-cutting measures, and potentially negative impacts on the economy.

Deflation Results in Ever-Decreasing Prices, Creating a Positive Result for Consumers