The term deflation
A) describes what happens when the money supply increases more rapidly than output.
B) is another name for simultaneously high rates of inflation and unemployment.
C) is used to describe a situation in which prices fall and inflation turns negative.
D) indicates a situation where an aggregate supply decrease takes place very rapidly.
E) means double-digit rates of inflation.

Question

Quizplus · Accepted Answer

Deflation is the opposite of inflation and occurs when the general price level of goods and services in an economy decreases over time. It is characterized by negative inflation and a decrease in the money supply, leading to a decrease in demand and economic activity.

The Term Deflation