A Decrease in the Overall Price Level (Or Falling Prices)

question 185

Short Answer

A decrease in the overall price level (or falling prices) is called _____. An extraordinarily high rate of inflation is called _____.

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Definitions:

Raw Material

Basic substances in their natural, modified, or unprocessed states used as inputs to production or manufacturing.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or production.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as the standard guidelines for financial accounting.

Purchasing Department

The division within an organization responsible for acquiring goods, services, and equipment necessary for its operations.