Economics A-Level
Deflation
What Deflation means in Economics A-Level, as defined for AQA.
Definitions of Deflation
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Reference: AQA
A sustained decrease in the general price level, indicated by a negative inflation rate, where the general price level in an economy is actively decreasing.
A sustained fall in the general price level, which increases the real value of debt and depresses consumer confidence.
A fall in the actual index number, meaning the absolute price level has fallen between those two periods.
A sustained fall in the general price level, which deflationary policies do not necessarily result in.
A sustained decrease in the general price level, resulting in a negative inflation rate.
Topics that use Deflation
- Inflation and deflation (AQA A-Level)
- Uses of index numbers (AQA A-Level)
Related terms
- Aggregate demand
- Base year
- Cost-push inflation
- Debt and wealth effects
- Deflationary policies
- Demand-pull inflation
- Depreciation
- Disinflation
Using Deflation in the exam
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