Economic Awareness - Sectors of Indian Economy
Which of the following statements correctly distinguishes deflation from disinflation?
Which of the following statements correctly distinguishes deflation from disinflation?
easy Q3 of 15
Step-by-Step Solution
Step 1: Understand definitions
Deflation is a fall in prices; disinflation is a slowdown in inflation rate but prices still rise.Step 2: Analyze options
Only the option correctly distinguishing deflation as price fall and disinflation as slower inflation rate is correct.Final Answer:
Deflation means prices fall; disinflation means inflation rate decreases but prices rise → Option AQuick Check:
Deflation = price fall; Disinflation = slower inflation rate ✅
Quick Trick: Deflation = prices down; Disinflation = inflation rate down.
Common Mistakes:
- Confusing the two terms or reversing their meanings.
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