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Economics (AS & A Level) · May / June 2025 · Paper 13 · Question 19

9708Price stability

An economy is experiencing a period of deflation. What must be happening?

  1. AThe average price level is falling.
  2. BThe output of the economy is falling.
  3. CThe rate of inflation is falling.
  4. DThe real value of money is falling.

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Correct answer: A. The average price level is falling.

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