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2 February, 07:28

Deflation occurs when

a. there is a decline in the price level.

b. there is a oneminus-time increase in the price level.

c. there is a sustained increase in the price level.

d. there is a decrease in the expected rate of inflation.

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Answers (1)
  1. 2 February, 08:46
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    Answer: a

    Explanation:

    By definition, deflation occurs when there is a general decline in prices, goods, and services in an economy.

    Deflation is the opposite of inflation.

    Therefore deflation increases the purchasing power of money while inflation decreases it.
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Home » Business » Deflation occurs when a. there is a decline in the price level. b. there is a oneminus-time increase in the price level. c. there is a sustained increase in the price level. d. there is a decrease in the expected rate of inflation.
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