A continuous decrease in the level of prices over time is called ________.

Question

Quizplus · Accepted Answer

Deflation is a situation where the prices of goods and services decrease continuously over a given period of time. It is opposite to inflation, where there is a continuous increase in the level of prices. Disinflation, on the other hand, is a situation where the rate of inflation decreases over time, even though prices are still increasing. Deflection is not a term used in economics.

A Continuous Decrease in the Level of Prices Over Time