Economics B A-Level
Deflation
What Deflation means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Deflation
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Reference: Pearson Edexcel
A sustained decrease in the general price level, meaning the inflation rate falls below 0%, which increases the purchasing power of money but can lead to delayed consumer spending.
Topics that use Deflation
- Inflation (Pearson Edexcel A-Level)
Related terms
- Business uncertainty
- Cost-push inflation
- Demand-pull inflation
- Disinflation
- Inflation
- Investment
- Nominal values
- Price indices
Using Deflation in the exam
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