Deflation refers to a:

Question

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Deflation refers to a general decrease in the overall price level of goods and services in an economy over a period of time. This is different from a decrease in relative prices where the prices of some goods may decrease while others increase. Deflation is also different from a slowing down of the rate of inflation, which means that prices are still increasing, just at a slower rate. Lastly, deflation is not a federal government policy of running budget surpluses, although such a policy could potentially contribute to deflation if it causes a decrease in spending and aggregate demand in the economy.

Deflation Refers to A