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A persistent fall in the general price level of goods and services is known as

  1. A
    Deflation
  2. B
    Disinflation
  3. C
    Stagflation
  4. D
    Depression

Solution & Step-by-step Explanation

Let's understand the related economic terms:
* Deflation is defined as a persistent, sustained decrease in the general price level of goods and services, associated with a negative inflation rate.
* Disinflation is a slowing down in the rate of inflation (prices are still rising, but at a slower pace).
* Stagflation is a situation characterized by slow economic growth accompanied by high unemployment and high inflation.
* Depression is a severe, long-term economic downturn.

Practice this question

Try it yourself before checking the explanation above.

A persistent fall in the general price level of goods and services is known as
A
Deflation
B
Disinflation
C
Stagflation
D
Depression

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