When the increase in prices goes from 5% to 2%, this is referred to as:
A) deflation.
B) disinflation.
C) inflation.
D) hyperinflation.

Name: When the increase in prices goes from 5% to 2%, this is referred to as: A) deflation. B) disinflation. C) inflation. D) hyperinflation.
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Question

Quizplus · Accepted Answer

Disinflation occurs when the rate of inflation decreases. In this case, the increase in prices goes from 5% to 2%, which is a decrease in the rate of inflation.

When the Increase in Prices Goes from 5% to 2