What is the difference between deflation and falling inflation?

Deflation is the state of an economy where prices are falling, representing a rise in the real value of money over time. If inflation is falling that means that the rate at which prices increase is reducing as time progresses. In short, deflation is a negative inflation figure as opposed to a decreasing inflation figure.

CG

Related Economics A Level answers

All answers ▸

Discuss the private and social costs associated with the production of cars


Should the government intervene in cases of market failure


What is unitary price elasticity of demand?


How do you find the profit level of a firm graphically? Why is this the case?