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BabaBlast [244]
3 years ago
11

Which economic indicator describes the process of generally declining prices

Social Studies
2 answers:
gregori [183]3 years ago
7 0

Answer:

Deflation  is the economic indicator which describes the process of generally declining prices

Explanation:

The occurrence of inflation, the prices of different commodities reduction of prices in the market. This is because change in money value increases as the prices fall in the market. As much as deflation is related to reducing costs, it does not mean every amount that is going to reduce in the market is because if deflation.

However, it only applies to the fall in prices that have a negative effect on unemployment. For instance, overproduction in the activities of the economy leads to deflation.

 

butalik [34]3 years ago
6 0

Answer:

The General Price Index

Explanation: The general price index is a weighted average of the main prices of the products consumed by individuals in a country. Thus, it measures the evolution of the prices of goods and services in a given economy. From the behavior of prices one can have both general price rise, called inflation, and general price fall, called deflation.

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