Question

What is “the general decrease in prices of goods and services”?

Answer 1

The general decrease in prices of goods and services is known as deflation. It is the opposite of inflation, which is a general increase in prices. Deflation occurs when there is a decrease in the demand for goods and services and/or an increase in the supply of goods and services. When prices go down, the purchasing power of money increases, which can stimulate economic growth and encourage consumers to spend more. However, deflation can also lead to economic problems such as lower profits for businesses, lower wages for workers, and increased unemployment.

Answer 2

The general decrease in prices of goods and services is called deflation. Deflation is the opposite of inflation and occurs when the average price level of goods and services in an economy decreases over time. Deflation can be caused by a variety of factors, such as a decrease in the money supply, an increase in the supply of goods and services, or a decrease in demand for goods and services. While falling prices may seem like a good thing for consumers, sustained deflation can lead to a decrease in economic activity and increase the burden of debt.

Answer 3

The general decrease in prices of goods and services is known as deflation. Deflation is characterized by a persistent decline in the overall price level, often accompanied by reduced economic activity.