________ typically results when demand decreases and supply increases.
A)Inflation
B)Chronic inflation
C)Reflation
D)Deflation

Question

Quizplus · Accepted Answer

Deflation is a decrease in general price level in an economy due to a surplus of goods and services which leads to a decrease in demand and an increase in supply. It can lead to a decrease in consumer spending, business profits and investment which can lead to an economic downturn.

________ Typically Results When Demand Decreases and Supply Increases