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:

Independence

The state or condition of being free from being influenced or controlled by others, in terms of decision-making or action.

Social Loafing

The tendency for individuals to exert less effort when working collectively in a group than when working individually.

Decision Polarization

The process through which an individual's choice becomes more extreme or pronounced after group discussion or exposure to persuasive arguments.

Peer Pressure

The influence exerted by a peer group in encouraging a person to change their attitudes, values, or behaviors in order to conform to group norms.