Deflation refers to a general decrease in prices across a range of goods and services. It is often associated with reduced levels of output, employment, and trade. Unlike controlled disinflation, deflation can have severe negative impacts on the economy.
A deflationary gap is an economic term that describes a situation where the Gross Domestic Product (GDP) is below its full-employment level, leading to unemployed resources and potentially falling prices (deflation).
An economic condition characterized by a significant decrease in business activity, falling prices, reduced purchasing power, excess supply over demand, rising unemployment, accumulating inventories, deflation, plant contraction, public fear, and caution.
The General Price Level is an index that provides a measure of the purchasing power of money. It is used to gauge inflation or deflation in an economy.
Income measured only in monetary terms, without adjusting for changes in purchasing power due to inflation or deflation.
Price level refers to the average of current prices across the entire spectrum of goods and services produced in the economy. It is often utilized as a gauge to measure inflation or deflation by comparing it to previous time periods.
An accounting system designed to account for changes in general price levels (inflation or deflation), making it an alternative to historical-cost accounting.
The 'purchasing power of the dollar' refers to the amount of goods and services that one dollar can buy in a particular market and time, compared to prior periods. This measurement considers inflation or deflation using an index of consumer prices.
