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Deflation is the fall of the general price market. The disadvantages of deflation are large levels of unemployment and an unstable economy.

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11y ago

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Define deflation explain merits and demerits of deflation?

merits and demerits of deflation


What are the benefits and disadvantages of inflation and deflation in an economy - Address as two separate categories inflation and deflation and then both categories into Benefits and disadvantages?

Don't have much time but some basics include: Dis: Menu costs, Loss of international competitiveness, Fall in exchage rate, Higher BOP deficit (current +capital a/c) -(hot money/ Imports in relation to exports)


What is deflation of of?

Deflation is when a currency becomes worthless. An Advantage of deflation is that there is less poverty and things become more affordable.


Why is the fed afraid of deflation?

Why is the central bank afraid of deflation


When was Deflation - film - created?

Deflation - film - was created in 2001.


What do you understand by the concept of deflation and the cause of deflation?

an increase in which exceeds the supply


What is the duration of Deflation film?

The duration of Deflation - film - is 180.0 seconds.


Do interest rates rise during deflation?

yes they do rise during deflation


When nominal GDP is less than real GDP is this inflation or deflation?

deflation


Discuss the advantages and disadvantages of deflation?

As deflation is a decrease in the price level, there is also a proportional increase in the purchasing power of a dollar. Those who have saved money will be able to buy more than previously, and banks will earn more (real) interest on loans made. Those who borrow money, however, will be be paying a higher (real) rate of interest (even with a fixed rate loan).


Economic condition in which the price of goods and services drops?

Deflation by: Andrea Burke


What is wind deflation?

Wind deflation is the process of blowing away the loose materials from the surface