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Consider the following statements
1) The reduction in the rate of inflation in called Disinflation.
2) Adecline in the overall prices throughout the country is called Deflation.
Mark the correct statement
Only 1
Only 2
Both 1 and 2
Neither 1 nor 2
Both the terms are related to inflation,which is defined as the general rise in prices of goods and services.
Disinflation :- in this the inflation remains but rate of inflation decreases. For example if the inflation rate is 6% it will come down to 5.25% but still inflation persists.
Deflation is opposite to inflation i.e when overall prices of goods and services fall down.
By: Simrandeep Dhaliwal ProfileResourcesReport error
Diksha garg
answer should be both as per your explanation.
Sayali Vijay Suroshe
both 1 and 2 will be correct accoding your explaination
Krishna kumari
answer is option 3 as both statement are true
Sahil rana
Both statements are correct
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