Question

What is the difference between inflation and deflation?

a. Inflation is a rise in the general price level over time while deflation is a fall in the general price level over time.

b. Inflation is a continuous rise in the price level while deflation is a one-time rise in prices.

c. Deflation is a continuous rise in the price level while inflation is a one-time rise in prices.

d. Inflation happens when all prices are rising, while deflation happens when only some prices are rising.