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

2303 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How does a reduction in interest rates affect the level of aggregate demand


Why are monopolies dynamically efficient?


What Components make up the Aggregate Demand Curve


Why do markets fail?


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