A persistent decline in the price level resulting from economic growth in the presence of stable aggregate demand is known as
A) demand-side deflation.
B) the interest rate effect.
C) secular deflation.
D) the real balance effect.

Question

Quizplus · Accepted Answer

This is because "secular deflation" refers specifically to a long-term decline in prices that occurs due to factors such as increased productivity or technological innovation, rather than a temporary decline caused by shifts in demand or other factors. The other options listed refer to more specific types or causes of deflation.

A Persistent Decline in the Price Level Resulting from Economic