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An economy where prices are falling rather than rising is experiencing:
ADeflation
BInflation
CStagnation
DRecession
Answer & Solution
Correct answer: A. Deflation
1. Name the opposite of the standard case.
2. Inflation is when most prices in an entire economy are rising.
3. The opposite movement has its own name.
4. There were a few months in 2009 that were deflationary.
5. So falling prices across an economy describe deflation.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 8 'Inflation'_
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