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Question
24 multiple choice 1 point what indicator provides the clearest indication that an economy is experiencing deflation? increase in the ppi decrease in the unemployment rate decrease in core inflation decrease in gdp
Deflation is a sustained decrease in the general price level of goods and services. Core inflation directly measures changes in underlying consumer prices, so a decrease in this metric is the clearest indicator of deflation. An increase in PPI points to rising producer prices (opposite of deflation), falling unemployment is linked to economic expansion, and falling GDP signals recession, not necessarily deflation.
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decrease in core inflation