If the economy is experiencing a sustained decrease in the price level, it is called _____
A) deflation.
B) inflation.
C) hyperinflation.
D) disinflation.
E) growth.

Question

Quizplus · Accepted Answer

A sustained decrease in the price level is referred to as deflation. This is different from inflation, which is a sustained increase in the price level. Disinflation is a reduction in the rate of inflation, while hyperinflation is an extremely high rate of inflation. Growth refers to an increase in the output of goods and services in an economy.

If the Economy Is Experiencing a Sustained Decrease in the Price