Deflation Is

question 23

Multiple Choice

Deflation is:

• A) continuing falls in the general price level
• B) a onetime increase in the general price level
• C) continuing increases in the general price level
• D) a onetime fall in the general price level

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Definitions:

Excess Demand

A market condition where the quantity demanded of a good exceeds the quantity supplied, leading to shortages.

Good

A tangible item or product that fulfills a need or desire and is available for purchase.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers from high prices.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market stability.