11.5-6 inflation and deflation Flashcards
1
Q
what is inflation?
A
a sustained increase in the average price level of goods and services
2
Q
what is deflation?
A
occurs when there is a fall in average price level of goods and services in the economy.
(when the percentage change in prices falls below zero %)
3
Q
what is disinflation?
A
occurs when the average price level increases but at a slower rate than before
4
Q
A
5
Q
A
6
Q
A
