When Japan experienced deflation in the 1990s, Japan's real GDP
A) grew more rapidly than during any decade since the 1960s.
B) grew more slowly than in decades during which Japan experienced inflation.
C) did not grow at all.
D) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

During the 1990s, Japan experienced a period of deflation which was associated with slower economic growth compared to previous decades when the economy was often experiencing inflation. This period is often referred to as the "Lost Decade" due to the prolonged economic stagnation.

When Japan Experienced Deflation in the 1990s, Japan's Real GDP