Deflation Generally Occurs When Which of the Following Occurs

question 34

Multiple Choice

Deflation generally occurs when which of the following occurs?

• A) Real GDP does not change.
• B) The consumer price index decreases.
• C) Nominal GDP does not change.
• D) The consumer price index is greater than the GDP deflator.
• E) The rate of inflation falls, for example, from 4% to 3%.

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