Deflation occurs when
A) the average price level declines.
B) economic activity declines.
C) the economic growth rate declines.
D) the unemployment rate declines.

Question

Quizplus · Accepted Answer

Deflation occurs when the average price level declines, meaning that the overall price of goods and services in an economy decreases. This can happen for a variety of reasons, including decreased demand, increased productivity, or a decrease in the money supply.

Deflation Occurs When