Statement I: Deflation and disinflation are virtually identical.
Statement II: Inflation got progressively worse through most of the 1980s.

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 inflation varied during the 1980s, with significant countries experiencing a decrease in inflation rates through monetary policies.

Statement I: Deflation and Disinflation Are Virtually Identical