Practice Exam Questions
Policies to Avoid Deflation MCQ Revision Question
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Last updated 21 Mar 2021
Here is an answer to a multiple choice question on deflation in the Swedish economy.
Deflation is a sustained fall in the general price level. The right answer to the question provides a combination of both expansionary fiscal and monetary policy in a bid to raise the level of aggregate demand and help (over time) restore price stability.
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