https://www.youtube.com/
watch?v=KIp-
DEFLATION WLLyXOo&feature=emb_l
ogo
3/30/2023 54
, DEFLATION
The concept of deflation is opposite to inflation. It is defined as
a situation when the general income level and price level are
falling. It is also known as negative inflation. During deflation
the income level falls against the available supply of goods and
services. The stage of deflation arises when.
Prices are falling continuously
People prefer to hold money with them and do not keep goods.
The available supply of goods does not dispose off on the
prevailing prices.
People expect more reduction in prices thus reduce their
consumption to bring prices down.
3/30/2023 55
watch?v=KIp-
DEFLATION WLLyXOo&feature=emb_l
ogo
3/30/2023 54
, DEFLATION
The concept of deflation is opposite to inflation. It is defined as
a situation when the general income level and price level are
falling. It is also known as negative inflation. During deflation
the income level falls against the available supply of goods and
services. The stage of deflation arises when.
Prices are falling continuously
People prefer to hold money with them and do not keep goods.
The available supply of goods does not dispose off on the
prevailing prices.
People expect more reduction in prices thus reduce their
consumption to bring prices down.
3/30/2023 55
