deflation
Definition
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.
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Related Terms
disinflation, depression, reflation
'deflation
' appears in the definitions of these other terms on BusinessDictionary.com decouple, economic price adjustment, monetary item, macroeconomic conditions, macroeconomics, and
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