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vladimir1956 [14]
3 years ago
9

When is "deflation" most likely to occur in the business cycle?

Business
1 answer:
V125BC [204]3 years ago
8 0
In economics<span>, </span>deflation<span> can be described as a decrease in the general </span>price level<span> of goods and services or </span>currency appreciation<span> with respect to the same goods and services.</span><span> Deflation occurs when the </span>inflation<span> rate falls below 0% (a negative </span>inflation rate<span>). Inflation reduces the real value of </span>money<span> over time; conversely, deflation increases the real value of money – the currency of a national or regional economy. This allows one to buy more goods and services than before with the same amount of money.</span>
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