Deflation generally occurs when which of the following occurs?
A. the consumer price index is greater than the GDP deflator
B. the consumer price index decreases
C. the rate of inflation falls, for example, from 4% to 2%
D. nominal GDP does not change
Answer:B
Deflation generally occurs when which of the following occurs?
A. the consumer price index is greater than the GDP deflator B. the consumer price index decreases C. the rate of inflation falls, for example, from 4% to 2% D. nominal GDP does not change