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
Answered by Charles G. Economics tutor

2349 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

I'm unsure how to structure my essay, which way is the best?


What two policies can the government employ to influence economic growth and inflation?


Evaluate measures that could be pursued by individual firms and by the government to reduce a current account deficit (30)


What happens to the Production Possibility Frontier (PPF) when productivity only increases in one good?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences