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Economics · Oct / Nov 2021 · Paper 12 · Question 16

2281Inflation

An economy recorded a second month of deflation. What does this mean?

  1. AIt was facing a recession.
  2. BPrice levels were falling.
  3. CTotal demand was rising.
  4. DUnemployment was falling.

As printed in the paper

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Correct answer: B. Price levels were falling.

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