Disinflation is
A) negative inflation.
B) a substantial increase in the rate of inflation.
C) a substantial decrease in the rate of inflation.
D) zero inflation.
E) the inflation rate consistent with output at potential.

Question

Quizplus · Accepted Answer

Disinflation refers to a significant decrease in the rate of inflation, but not negative inflation. It is different from deflation which is a sustained decrease in the general price level of goods and services in the economy.

Disinflation Is