Vocabulary Entry

deflation

|noun • verb

noun

A decrease in the general price level of goods and services in an economy.

Example Sentences

"Deflation can lead to lower consumer spending as people anticipate falling prices."

"Many economists fear that deflation can cause a recession."

"The government implemented measures to prevent deflation in the market."

verb

Example Sentences

"The recent economic policies might deflate the prices of essential goods."

"During the economic downturn, many businesses had to deflate their prices to attract customers."

"If demand continues to fall, we could see the market deflate rapidly."