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If the cost of a typical market basket in 2019 is 400 and the cost of a typical market basket in 2020 is 390, then during this period the economy is undergoing:

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User MHM
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2 Answers

3 votes

Answer:

deflation.

Step-by-step explanation:

answered
User Aidenhjj
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6 votes

If the cost of a typical market basket in 2019 is 400 and the cost of a typical market basket in 2020 is 390, then during this period the economy is undergoing deflation.

To add, deflation is a contraction in the supply of circulated money within an economy, and therefore the opposite of inflation.

answered
User Daniel Dreibrodt
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8.2k points
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