MANAGEMENT

Detailed explanation-1: -Deflation is a decrease in the general price level of goods and services. Put another way, deflation is negative inflation. When it occurs, the value of currency grows over time. Thus, more goods and services can be purchased for the same amount of money.

Detailed explanation-2: -Price deflation is a gradual decrease in consumer prices for goods and services. This is often caused by the deflationary gap, also known as demand gap, which is characterized by low demand and oversupply. Expecting prices to drop, consumers and businesses hold on to their money rather than spending it.

Detailed explanation-3: -Deflation is a general decline in prices for goods and services, typically associated with a contraction in the supply of money and credit in the economy. During deflation, the purchasing power of currency rises over time.

Detailed explanation-4: -There are two big causes of deflation: a decrease in demand or growth in supply. Each is tied back to the fundamental economic relationship between supply and demand. A decline in aggregate demand leads to a fall in the price of goods and services if supply does not change.

Detailed explanation-5: -Deflation is when the general price levels in a country are falling-as opposed to inflation when prices rise. Deflation can be caused by an increase in productivity, a decrease in overall demand, or a decrease in the volume of credit in the economy.