What is the difference between deflation and falling inflation?

Deflation is the state of an economy where prices are falling, representing a rise in the real value of money over time. If inflation is falling that means that the rate at which prices increase is reducing as time progresses. In short, deflation is a negative inflation figure as opposed to a decreasing inflation figure.

CG
Answered by Charles G. Economics tutor

2306 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What are some common points I can use in 15 an 25 mark questions?


What is PED and how do I calculate it?


Where on a firm diagram would a firm be at a profit maximising equilibrium?


What are some Advantages and Disadvantages of Globalisation?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences