A decrease in the general (average)price level of goods and services in the economy is known as:
A)inflation.
B)deflation.
C)stagflation.
D)reflation.

Question

Quizplus · Accepted Answer

Deflation is a decrease in the general (average) price level of goods and services in the economy. Inflation, on the other hand, is an increase in the general price level. Stagflation is a combination of high inflation and stagnant economic growth. Reflation is a policy used by governments to stimulate economic growth by increasing the money supply and lowering interest rates.

A Decrease in the General (Average)price Level of Goods and Services