Question

what is inflation and deflation ?​

Answer 1

Answer:

Deflation: An Overview. Inflation occurs when the prices of goods and services rise, while deflation occurs when those prices decrease. The balance between these two economic conditions, opposite sides of the same coin, is delicate and an economy can quickly swing from one condition to the other.

Explanation:

Answer 2

Inflation and deflation

Explanation:

• Inflation can be defined as the consistent rise in price while consistent and substantial decrease in price is called deflation.
• Inflation leads to fall in purchasing power of money while deflation leads to increase in purchasing power of money
• Interest rates are reduced by banks during inflation, while banks increase the interest rates during deflation.
• During inflation higher wage is demanded by labour during inflation, while during deflation there is decreased input cost which is produced to the customer in a way of reduced prices.