A falling price level is called ________ and a fall in the rate of inflation is called ________.

Question

Quizplus · Accepted Answer

A falling price level is called deflation, and a fall in the rate of inflation is called disinflation. Option D is the only one that correctly pairs these terms. Options A and C both include the term disinflation, but they incorrectly pair it with a contraction and deflation, respectively. Option B reverses the order of the two terms, making it incorrect as well.

A Falling Price Level Is Called ________ and a Fall