_____ is a significant reduction in the rate of inflation,while _____ is a reduction in the level of prices.
A) Stagflation;deflation
B) Disinflation;stagflation
C) Deflation;disinflation
D) Disinflation;deflation

Question

Quizplus · Accepted Answer

Disinflation refers to a reduction in the rate of inflation, while deflation refers to a reduction in the level of prices. Stagflation is a situation where there is both high inflation and low economic growth. Therefore, option A is incorrect. Option B is incorrect as disinflation is a reduction in the rate of inflation, not an increase. Option C is incorrect as it suggests that disinflation is a reduction in the level of prices, which is incorrect.

_____ Is a Significant Reduction in the Rate of Inflation,while