Suppose an economy had an inflation rate of 7 percent last year and decreased to 6 percent this year. This means that the economy is _____

Question

Quizplus · Accepted Answer

Disinflation means a decrease in the rate of inflation, which is what is happening in this scenario. The economy is still experiencing inflation, but at a lower rate than the previous year. None of the other options accurately describe the situation.

Suppose an Economy Had an Inflation Rate of 7 Percent