Deflation Occurs When

question 56

Multiple Choice

Deflation occurs when

• A)there is a sustained increase in the price level.
• B)there is a one-time increase in the price level.
• C)there is a decline in the price level.
• D)there is a decrease in the expected rate of inflation.

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Definitions:

Heart Attack

A medical emergency that occurs when the flow of blood to the heart is blocked, causing heart muscle damage or death.

Normal Good

A type of good for which demand increases when consumer income rises, and decreases when consumer income decreases.

Rental Price

The cost associated with renting a property, such as an apartment or a car.

Normal Good

A type of good for which demand increases as the income of individuals or the economy increases.