A decline in general price levels, often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending. Deflation has often had the side effect of increasing unemployment in an economy, since the process often leads to a lower level of demand in the economy. opposite of inflation.
Related information about deflation:
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- Deflation - Merriam-Webster Online
an act or instance of deflating : the state of being deflated. 2. : a contraction in the volume of available money or credit that results in a general decline in prices. 3 ...
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