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noname [10]
4 years ago
13

What is the difference between inflation and deflation?

Business
2 answers:
Lorico [155]4 years ago
6 0
I don't know maybe c
aliina [53]4 years ago
3 0

Answer:

a. inflation is a rise in the general price level over time while deflation is a fall in the general price level over time.

Explanation:

Inflation occurs when the prices of goods and services rises over time. For example, a bag of cookies today is, for example, $1. If in a year it is $1.20, there was an inflation.

Deflation occurs when the prices of goods and services decreases over time. For example, a bag of cookies today is, for example, $1. If in a year it is $0.80, there was a deflation.

So, the correct answer is:

a. inflation is a rise in the general price level over time while deflation is a fall in the general price level over time.

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