Deflation is a decrease in
A) the price of one item.
B) the overall price level.
C) the average income level.
D) real gross national product.

Question

Quizplus · Accepted Answer

Deflation is a decrease in the overall price level, which means that prices of goods and services across the economy are falling. This is in contrast to inflation, which is an increase in the overall price level. Deflation can be caused by factors such as a decrease in demand for goods and services, a decrease in money supply, or an increase in productivity.

Deflation Is a Decrease in