Economic Awareness - Sectors of Indian Economy
Deflation is best described as:
Deflation is best described as:
easy Q13 of 15
Step-by-Step Solution
Step 1: Identify the concept
Deflation is the opposite of inflation and relates to price level changes.Step 2: Apply the concept
Deflation means a sustained decrease in the general price level. A sustained increase in the general price level describes inflation. A temporary rise in prices of essential goods lacks the sustained nature. An increase in the money supply relates to monetary expansion, not deflation.Final Answer:
A sustained decrease in the general price level → Option CQuick Check:
Deflation = sustained fall in general price level ✅
Quick Trick: Deflation = opposite of inflation (price levels fall).
Common Mistakes:
- Confusing deflation with temporary price changes or inflation.
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