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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
Concerning the hypothesis that there has occurred a long run deterioration in the developing countries terms of trade empirical studies provide ?
Among the institutions and policies that have been created to support developing countries are?
Most of developing-country exports consist of ?
Which of the following is a valid currency______________?
From each according to his ability to each according to his need is the theoretical slogan of ?
Exchange rate of which of the following currencies falls because of persistent balance of payments deficit ?