Deflation is an overall:
A) rise in prices.
B) decline in prices.
C) rise in prices, excluding goods and services with historically volatile price changes.
D) decline in prices, excluding goods and services with historically volatile price changes.

Question

Quizplus · Accepted Answer

Deflation refers to a decrease in the general price level of goods and services, which means a decline in prices. Therefore, the best choice is B. A is incorrect as it refers to inflation. C and D are incorrect as they specify excluding some goods and services, whereas deflation is a general decline in prices across all goods and services.

Deflation Is an Overall