Question

Between 1980 and 1984 inflation in the US fell from 9.5% to 4%, hence during this...

Between 1980 and 1984 inflation in the US fell from 9.5% to 4%, hence during this period US experienced

Select one:

a. Hyperinflation

b. Deflation

c. Disinflation

d. Falling Prices

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Homework Answers

Answer #1

The deflation means a decrease in the overall price level in the economy.

Disinflation is referred as a decrease in the rate of inflation. In other words, it is a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time. It is the reverse of reflation.

Hence when between 1980 and 1984 inflation in the US fell from 9.5% to 4%, hence during this period US experienced disinflation.

This is because there is fall in the inflation rate.

Hence option c is the correct answer.

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