A persistently declining price level resulting from economic growth and unchanged aggregate demand is called
A) demand-side deflation.
B) supply-side deflation.
C) ozian deflation.
D) secular deflation.

Question

Quizplus · Accepted Answer

Secular deflation is a long-term and persistent decline in the general price level of goods and services in the economy. This type of deflation can occur due to technological advancements, increased productivity, and overall economic growth, which result in a decrease in production costs and prices. Unlike demand-side deflation, which is caused by a decrease in aggregate demand, secular deflation is a supply-side phenomenon.

A Persistently Declining Price Level Resulting from Economic Growth and Unchanged