What Is the Difference Between Inflation and Deflation

question 2

Multiple Choice

What is the difference between inflation and deflation?

• A)Inflation is a sustained decrease in the price level whereas deflation is a sustained increase in the price level.
• B)Inflation is a sustained increase in the price level whereas deflation is a sustained decrease in the price level.
• C)Inflation is a measure of relative prices whereas deflation is a sustained increase in the price level.
• D)None of the above.

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Definitions:

Random Variability

The unpredictability in the outcomes of an experiment due to chance or factors not controlled by the researcher.

Relationships Between Variables

Relationships between variables involve how one variable may influence or relate to another, critical in understanding cause and effect in scientific studies.

Participant Variables

Characteristics of the individuals participating in a study (such as age, gender, or background) that can influence the research outcome.

Personal Attributes

Characteristics or features that define an individual, including traits, behaviors, and attitudes, which can influence personal and social interactions.