Deflation refers to a period of falling average prices across an economy, which is a sign of economic trouble that goes hand-in-hand with very high unemployment.

Question

Quizplus · Accepted Answer

Deflation is often associated with economic downturns, where reduced consumer spending leads to lower demand, causing businesses to cut costs, including labor, which can result in high unemployment.

Deflation Refers to a Period of Falling Average Prices Across