14 Views

Question : Which of the following statements is true regarding disinflation?

Option 1: A scenario when inflation is mainly due to inflation of only a few commodities and not of all commodities.

Option 2: An overall decrease in prices over a specific period.

Option 3: A decrease in the rate of inflation in a specific period.

Option 4: A sudden sharp decrease in prices due to unexpected reasons.


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: A decrease in the rate of inflation in a specific period.


Solution : The correct answer is A decrease in the rate of inflation in a specific period.

Disinflation is a decrease in the rate of inflation or a slowdown in the rate of increase in the prices of goods and services in a country. Generally, we can say it is the opposite of inflation. Whereas deflation is a decrease in the overall price level of goods and services. Disinflation is a temporary slowdown of the pace of price inflation.

Know More About

Related Questions

Amity Online MBA
Apply
Apply for an Online MBA from Amity Online.
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books