Which out of the following is phenomenon that leads to Deflation ........

Economic and Social Issues Inflation Trends

Which out of the following is phenomenon that leads to Deflation?

It is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services

It is a situation of persistent rise in inflation along with dip in growth and increase in unemployment

It is the situation where prices fall continuously or have tendency to fall

It represents price rise in all goods and services but does not include articles from food and energy sector.

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Explanation:

Deflation is the situation where prices fall continuously or have tendency to fall. In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0%. Inflation reduces the value of currency over time, but sudden deflation increases it