Deflation Occurs When

question 31

Multiple Choice

Deflation occurs when

• A) the average price level declines.
• B) economic activity declines.
• C) the economic growth rate declines.
• D) the unemployment rate declines.

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Definitions:

Likelihood

Refers to the probability or chance of an event occurring.

Occurrence

The fact or frequency of something happening or being present in a place or situation.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.

Indelible Memories

Memories that are so vivid and clear that they seem impossible to forget, often due to their emotional intensity.