If the price level is falling,the economy is experiencing
A) creeping inflation
B) stagflation
C) disinflation
D) inflation
E) deflation

Question

Quizplus · Accepted Answer

When the price level is falling, the economy is experiencing deflation, which means a sustained decrease in the general price level of goods and services in the economy. This is the opposite of inflation, which is a sustained increase in the general price level. Disinflation refers to a decrease in the rate of inflation, while stagflation is a combination of high inflation and stagnant economic growth. Creeping inflation refers to a low rate of inflation.

If the Price Level Is Falling,the Economy Is Experiencing