What is Deflation? - Definition, Causes & Effects


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question 1 of 3

Which of the following is the best explanation of deflation?

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1. What is the opposite of deflation?

2. What happens with the supply of money during deflation?

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About This Quiz & Worksheet

This quiz and worksheet combo will test your knowledge of deflation. These review tools focus on deflationary spiral and who can benefit from deflation.

Quiz & Worksheet Goals

During the assessments, you will be tested on the following:

  • Definition of deflation
  • Who can temporarily benefit from deflation
  • The opposite of deflation

Skills Practiced

  • Information recall - access the knowledge you've gained regarding deflation
  • Defining key concepts - ensure you can define main terms such as deflation and deflationary spiral
  • Interpreting information - verify that you can read information regarding the supply of money during deflation and interpret it correctly

Additional Learning

To learn more about deflation, take a look at the lesson What Is Deflation? - Definition, Causes & Effects. The lesson covers these objectives:

  • Define inflation
  • Explain the causes of deflation
  • Understand the effects of deflation