Deflation
A) is a typical economic event in the economy.
B) is scheduled by the nation's economists to make economic corrections.
C) occurs only in command economies.
D) is a general decrease in the level of prices.
E) is characteristic of a mixed economy.

Question

Quizplus · Accepted Answer

Deflation is a general decrease in the level of prices in an economy, which can be caused by a decrease in the money supply, a decrease in demand for goods and services, or an increase in the supply of goods and services. It is not a typical event, nor is it scheduled by economists to make economic corrections. Deflation can occur in any type of economy, including mixed and command economies.