If the cost of a typical market basket in 2019 is 400 and the cost of a typical market basket in 2020 is 390, then during this period the economy is undergoing
A) inflation.
B) disinflation.
C) deflation.
D) hyperinflation.

Question

Quizplus · Accepted Answer

Deflation is indicated by a decrease in the cost of a typical market basket, from 400 to 390 in this case, showing that overall prices have fallen.

If the Cost of a Typical Market Basket in 2019