Imagine this scenario: the inflation rate has fallen from 4 percent to 1 percent. How would you label this change in price level

Question

Lyrx [107]

3 years ago

12

Imagine this scenario: the inflation rate has fallen from 4 percent to 1 percent. How would you label this change in price level

?

Social Studies

1 answer:

olga55 [171] · Answer 1 · 2022-03-31T01:06:51+03:00

If inflation rate fell to 4% and drops to 1%, there is a disinflation. It happens when the inflation rate slows down and makes a decrease of product prices using the gross domestic product as the basis. A deflation comes when it goes to 0%.