Explanation:

- Inflation (Option 3): This is when the overall price level in an economy rises continuously. It means money buys less and purchasing power falls.

- Disinflation (Option 1): This occurs when the rate of inflation slows but remains positive. Prices are still increasing, just at a slower rate than before.

- Deflation (Option 2): This is when prices decline across the economy, which can increase purchasing power but may lead to reduced economic growth.

- Stagflation (There’s a typo in the option list—likely meant to be "Option 4"): This is when inflation is high, economic growth slows, and unemployment remains steadily high. It combines stagnation and inflation.