on 5 of 25 >Classify the statements as true or false by placing them in the correct category.TrueDeflation often results in a decrease in aggregate demand.Answer BankDeflation is a theoretical possibility but almost never occurs.Deflation is when the rate of inflation decreases.Answer BankFalseDeflation occurs when the aggregate price level falls.Deflation does not affect people in the economy uniformly. Some people are made better off and others are made worse off.

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Deflation often results in a decrease in aggregate demand. Deflation is a theoretical possibility but almost never occurs. Answer Bank Deflation is when the rate of inflation decreases. Deflation occurs when the aggregate price level falls. Deflation does not affect people in the economy uniformly. Some people are made better off and others are made worse off.

Deflation often results in a decrease in aggregate demand. Deflation is a theoretical possibility but almost never occurs. Answer Bank Deflation is when the rate of inflation decreases. Deflation occurs when the aggregate price level falls. Deflation does not affect people in the economy uniformly. Some people are made better off and others are made worse off.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 53CTQ: The AD/AS model is static. It shows a snapshot of the economy at a given point in time. Both...

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