A-LevelEconomicsThe macroeconomy9708/12 · May/June 2019 · Q251 Mark
An economy is experiencing a period of deflation. What must be happening?
AThe average price level is falling.
BThe output of the economy is falling.
CThe rate of inflation is falling.
DThe real value of money is falling.
✓ Correct answer
A: The average price level is falling.
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