A sustained decrease in the average of all prices of goods and services in the economy is known as
A) inflation.
B) disinflation.
C) deflation.
D) hyperinflation.

Question

Quizplus · Accepted Answer

Deflation is a sustained decrease in the average of all prices of goods and services in the economy. It is the opposite of inflation, which is an increase in prices. Disinflation refers to a decrease in the rate of inflation, while hyperinflation is a very high rate of inflation that can lead to an economic crisis.

A Sustained Decrease in the Average of All Prices of Goods