What is deflation________________?
Correct answer: D. Reverse of inflation
- A. Deficit Budget
- B. Reduction in taxation
- C. Increase in public expenditure
- D. Reverse of inflation
Explanation
Deflation is a sustained fall in the general price level, so it is commonly described as the reverse of inflation. A budget deficit and changes in taxation or public expenditure are fiscal-policy concepts, not definitions of deflation.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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