If the cost of a typical market basket is 400 in 2018, 410 in 2019, and 405 in 2020, then during this period the economy is undergoing:
A) inflation.
B) disinflation.
C) deflation.
D) hyperinflation.

Question

Quizplus · Accepted Answer

Disinflation refers to a decrease in the rate of inflation. In this case, the cost increased from 2018 to 2019, indicating inflation, but then decreased from 2019 to 2020, indicating a slowing down of inflation, which is disinflation.

If the Cost of a Typical Market Basket Is 400