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
Related Economics A Level answers
All answers ▸Describe one effect of an increase in the rate of interest on the economy?
Explain the key characteristics of perfect competition
Using a demand and supply diagram, comment on the likely impact on the market for new houses of relaxing planning regulations? (6)
Why does inflation decrease but prices continue to go up?