(I) Deflation is a decrease in the general price level of goods and services. It occurs when the inflation rate falls below 0%.

(II) Disinflation is the same phenomenon as deflation.

True, False

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False, True

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False, False

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True, True

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Solution

The correct option is A
True, False

Disinflation is not the same phenomenon as deflation. Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.

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Similar questions

Q. Consider the following statements:
(1) Deflation is decrease in the general price level of goods and services.
(2) Deflation is the negative inflation rate which falls below

0

%.
Which of the statements given above is/are correct?

Q. The general price level in an economy decreases during deflation.

Q. Q. With reference to the concepts of inflation which of the following statements is/are correct?Select the correct answer using the code given below:

1 only
2 only
Both 1 and 2
Neither 1 nor 2

Consider the following statements and choose the option which is correct.

(1) Potential output is sometimes called the Natural Gross Domestic Product.

(2) When an economy has fallen into deflation demand from businesses and consumers to buy products falls as they expect to pay less later as prices fall..

(3) Deflation is the opposite of Inflation.

Q. 74. Match the correct pairs
1. Disinflation- A. It is a situation where the price increases are so out of control that the concept of inflation is meaningless.
2. Deflation- B. It occurs when the prices of goods rise while unemployment increases and spending declines.
3. Hyperinflation- C. It is a slowing in the rate of price inflation over the short term.
4. Stagflation- D. When the purchasing power of currency and wages are higher than they otherwise would have been.
Correct answer code is:

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(I) Deflation is a decrease in the general price level of goods and services. It occurs when the inflation rate falls below 0%. (II) Disinflation is the same phenomenon as deflation.

The correct option is A True, False Disinflation is not the same phenomenon as deflation. Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.

(I) Deflation is a decrease in the general price level of goods and services. It occurs when the inflation rate falls below 0%.

(II) Disinflation is the same phenomenon as deflation.

The correct option is A
True, False

Disinflation is not the same phenomenon as deflation. Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.