Which of the following defines deflation?
A) It is a typical economic event in the U.S.economy.
B) It is scheduled by the nation's economists to make economic corrections.
C) It occurs only in command economies.
D) It is a general decrease in the level of prices.
E) It is characteristic of a mixed economy.

Question

Quizplus · Accepted Answer

Deflation is a general decrease in the level of prices, which means that the purchasing power of money increases. It is not a typical economic event in the U.S. economy, nor is it scheduled by economists. It can occur in any type of economy, including mixed economies.

Which of the Following Defines Deflation