Statement I: Deflation and disinflation mean exactly the same thing.
Statement II: If last year's rate of inflation was 6%,that would mean that the price of every good or service went up by 6% for last year.

Question

Quizplus · Accepted Answer

Statement I is false because deflation refers to a decrease in the general price level of goods and services, while disinflation refers to a decrease in the rate of inflation. Statement II is false because a 6% inflation rate means the overall price level increased by 6%, but not every individual good or service's price increased by exactly 6%.

Statement I: Deflation and Disinflation Mean Exactly the Same Thing