Disinflation most likely occurs when
A)output grows at an increasing rate over time..
B)output grows at a decreasing rate over time.
C)output growth becomes negative.
D)the overall price level declines over time.
E)the overall price level is negative.

Question

Quizplus · Accepted Answer

Disinflation occurs when the rate of inflation (the rate at which prices increase) slows down. This can happen when output grows at a decreasing rate over time, as it may lead to reduced demand pressures on prices.

Disinflation Most Likely Occurs When