Deflation has occurred if the economy's price index for this year is lower than the same economy's price index for last year.

Name: Deflation has occurred if the economy's price index for this year is lower than the same economy's price index for last year.
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Question

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Deflation is a decrease in the general price level of goods and services in an economy over time, hence if the price index for this year is lower than last year, deflation has occurred.

Deflation Has Occurred If the Economy's Price Index for This