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O-LevelEconomicsGovernment and the macroeconomy2281/12 · Oct/Nov 2021 · Q161 Mark

An economy recorded a second month of deflation. What does this mean?

AIt was facing a recession.
BPrice levels were falling.
CTotal demand was rising.
DUnemployment was falling.

✓ Correct answer

B: Price levels were falling.

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2021 Paper 1 Variant 2, question 16.

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