Deflation:
A)is a sustained fall in the aggregate price level.
B)is negative inflation.
C)is much less common than inflation.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Deflation is characterized by a sustained fall in the overall price level, leading to negative inflation. It is less common than inflation but can have severe economic consequences such as increased debt burdens, decreased demand, and unemployment. Therefore, all of the given statements are true.