Question

Which economic indicator describes the process of generally declining prices? 1)inflation 2)deflation 3)gross domestic product 4)recession 5)unemployment

Answer 1

The answer is 2, deflation. 

Answer 2

The answer is "deflation".

Deflation refers to the general decrease in costs for products and enterprises happening when the swelling rate falls beneath 0%. Emptying happens normally when the cash supply of an economy is settled. During deflation, the buying intensity of cash and wages are higher than they generally would have been. This is unmistakable from yet like value collapse, or, in other words diminish in the value level.