Deflation

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  • Created by: Lottie
  • Created on: 20-05-12 10:28

WHAT IS IT?

  • decrease in general price level of the economy
  • fall in prices in particular markets NOT the same as economy wide deflation
  • economist believe that it is sometimes beneficial for the economy as stable price level can lead to better decisions & more effeicent use of scarce resources
  • allows companies to cut costs & rpices, therby…

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