USA HISTORY

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: -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.

Detailed explanation-3: -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-4: -Also known as a negative inflation rate in macroeconomics, deflation occurs when prices fall. Learn about the causes, effects, and history of deflation.

Detailed explanation-5: -Deflation, conversely, is the general decline in prices for goods and services, indicated by an inflation rate that falls below zero percent. Both can be potentially bad for the economy, depending on the underlying reasons and the rate of price changes.