The opposite situation of inflation is known as:
A. Deflation
B. Stagflation
C. Hyperinflation
D. All of the above
Answer:A
The opposite situation of inflation is known as:
A. Deflation B. Stagflation C. Hyperinflation D. All of the above
Explanation: When the general level of prices is falling over a period of time this is deflation, the opposite situation of inflation. It is also known as disinflation. But in contemporary economics, deflation or disinflation not used to indicate fall in prices. Instead, a price rise is termed a ‘rise in inflation’ and a price fall is termed a ‘fall in inflation’.