When the overall price level falls in an economy,this is not beneficial to consumers because the economy typically gets mired in a severe recession and

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When the overall price level falls, this is known as deflation. Deflation can lead to a cycle of economic decline because consumers tend to delay purchases in anticipation of further price decreases. This decreases overall demand and can cause businesses to cut production and jobs. As a result, real incomes fall for workers and businesses, leading to a recession.

When the Overall Price Level Falls in an Economy,this Is