Question

inflation and deflation
introduction: sort each description into the category where it fits best.
causes steadily falling prices
usually occurs as demand falls
reduces purchasing power
reduces the value of money
increases the value of money
causes steadily rising prices
inflation
deflation

Explanation:

Inflation is characterized by rising prices and a decrease in the value of money, reducing purchasing - power. Deflation is the opposite, with falling prices and an increase in the value of money, often occurring when demand drops.

Answer:

Inflation: Reduces purchasing power, Reduces the value of money, Causes steadily rising prices
Deflation: Causes steadily falling prices, Usually occurs as demand falls, Increases the value of money