MCQ Revision Question: Policies to Avoid Deflation

3,183 views · Published 18 January 2017 · 3:15 · Indexed 6 November 2026

Channel: tutor2u · 2017 · Education

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​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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