What Is the Difference Between Deflation and Disinflation

question 122

Multiple Choice

What is the difference between deflation and disinflation?

• A) Deflation is used in microeconomics, whereas disinflation is used in macroeconomics.
• B) Deflation refers to changes in expected inflation, while disinflation refers to changes in the actual rate of inflation.
• C) Deflation refers to a decrease in the overall price level, or negative inflation, while disinflation simply refers to a decrease in the inflation rate.
• D) There is no difference between these two concepts; they are synonyms.

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Definitions:

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