Describe the terms inflation-deflation and inflation rate, Business Economics

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Describe the terms inflation, deflation, and inflation rate and price stability.

Inflation and Deflation:

a. An increasing aggregate price level is called as inflation.

b. A reducing aggregate price level is termed as deflation.

c. The inflation rate is the yearly percent change into the aggregate price level.

d. The whole economy has price stability while the aggregate price level is changing only gradually.

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