If the cost of a typical market basket is 400 in 2018, 410 in 2019, and 415 in 2020, then during this period the economy is undergoing

Question

Quizplus · Accepted Answer

Disinflation is a situation where the rate of inflation is decreasing, but prices are still increasing. In this case, the cost of the market basket is increasing, but at a slower rate each year (from 2.5% in 2018-2019 to 1.2% in 2019-2020). Therefore, the economy is undergoing disinflation.

If the Cost of a Typical Market Basket Is 400