Since 1950, the U.S. economy has likely experienced:
A) more periods of deflation than disinflation.
B) more periods of disinflation than deflation.
C) an equal number of periods of deflation and disinflation since they are synonymous.
D) none of the answers provided is correct.

Question

Quizplus · Accepted Answer

Disinflation is defined as a decrease in the rate of inflation, while deflation is a decrease in the overall price level. Since 1950, the U.S. economy has experienced only a few brief periods of deflation, such as during the recession of 2008-2009, while there have been numerous periods of disinflation. Therefore, the best choice is B: more periods of disinflation than deflation.

Since 1950, the U.S. Economy Has Likely Experienced