Economics Multiple Choice Question – 27 September 2021

An economy is experiencing a period of deflation.

What must be happening?

Select ONE answer:

1. The average price level is falling.
2. The output of the economy is falling.
3. The rate of inflation is falling.
4. The real value of money is falling.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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