GENERAL KNOWLEDGE

Detailed explanation-1: -(I) Deflation is a decrease in the general price level of goods and services. It occurs when the inflation rate falls below 0%. (II) Disinflation is the same phenomenon as deflation.

Detailed explanation-2: -When prices are falling continuously, the phenomenon is called deflation.

Detailed explanation-3: -Deflation is a process where prices of consumer goods and services fall and money increases in value. Longer periods of deflation can lead to higher unemployment, a decrease in demand, and a reduction in economic activity. Deflation doesn’t necessarily affect the whole economy.

Detailed explanation-4: -Deflation is the general decline of the price level of goods and services. Deflation is usually associated with a contraction in the supply of money and credit, but prices can also fall due to increased productivity and technological improvements.