Practice prompt · Q:economics-and-market-foundations/classify-deflation-001

Classify a negative broad-index change

Distinguish deflation from disinflation and a single falling price.

Updated Aug 7, 2026 Review due Nov 7, 2026
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An unchanged broad index falls from 125 to 122.5. Which classification is controlled?

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Answer: a

Choice a. (122.5 - 125) / 125 = -2%.