Question

what is meant by deflation?class 9... please urgently needed... ​

Answer 1

• ɪɴ ᴇᴄᴏɴᴏᴍɪᴄs, ᴅᴇғʟᴀᴛɪᴏɴ ɪs ᴀ ᴅᴇᴄʀᴇᴀsᴇ ɪɴ ᴛʜᴇ ɢᴇɴᴇʀᴀʟ ᴘʀɪᴄᴇ ʟᴇᴠᴇʟ ᴏғ ɢᴏᴏᴅs ᴀɴᴅ sᴇʀᴠɪᴄᴇs. ᴅᴇғʟᴀᴛɪᴏɴ ᴏᴄᴄᴜʀs ᴡʜᴇɴ ᴛʜᴇ ɪɴғʟᴀᴛɪᴏɴ ʀᴀᴛᴇ ғᴀʟʟs ʙᴇʟᴏᴡ 0% (ᴀ ɴᴇɢᴀᴛɪᴠᴇ ɪɴғʟᴀᴛɪᴏɴ ʀᴀᴛᴇ). ɪɴғʟᴀᴛɪᴏɴ ʀᴇᴅᴜᴄᴇs ᴛʜᴇ ᴠᴀʟᴜᴇ ᴏғ ᴄᴜʀʀᴇɴᴄʏ ᴏᴠᴇʀ ᴛɪᴍᴇ, ʙᴜᴛ sᴜᴅᴅᴇɴ ᴅᴇғʟᴀᴛɪᴏɴ ɪɴᴄʀᴇᴀsᴇs ɪᴛ.

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Answer 2

Answer:

When the overall price level decreases so that inflation rate becomes negative, it is called deflation.

Explanation:

Hope it helps you!