Which of the Following Situations Generally Exists When Deflation Occurs

question 3

Multiple Choice

Which of the following situations generally exists when deflation occurs?

• A)inflation and unemployment are both increasing
• B)inflation and unemployment are both decreasing
• C)the price level is decreasing
• D)the rate of inflation is falling from,for example,10% to 3%
• E)the natural rate of unemployment is zero

---

Definitions:

Form W-2

A tax form used in the United States to report wages paid to employees and the taxes withheld from them.

Salaries

Compensation that employees receive regularly for rendering their services.

Withholdings

Amounts of money withheld from an employee's paycheck for taxes, health insurance, retirement savings, etc., and paid directly to the government or other entities.

Payroll Reporting

The process of compiling and submitting employee payroll data, including wages, salaries, and tax withholdings, to relevant authorities or organizations.