deflationary

Meanings

• adjective

  A situation in which the general price level for goods and services falls, and each individual price remains unchanged.

  - "The deflationary economy caused a decrease in demand for goods and services."
  - "Inflation is the opposite of deflationary."

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Variants

List of all variants of deflationary that leads to same result
deflation , deflationary , deflations

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Etymology

origin and the way in which meanings have changed throughout history.

Derived from the Latin word 'deflatio' meaning a letting down or a sinking, and the suffix 'ary' meaning relating to.

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Trivia

Any details, considerations, events or pieces of information regarding the word

1. Deflation can lead to an increase in real wages and a decrease in borrowing costs.

2. Deflation was a common occurrence during the Great Depression.

3. Deflation can lead to a decrease in economic activity as consumers and businesses delay purchases in hopes of lower prices.

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Related Concepts

informations on related concepts or terms closely associated with the word. Discuss semantic fields or domains that the word belongs to

1. Inflation: A sustained increase in the general price level for goods and services in an economy over a period of time.

2. Stagflation: A situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high.

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How to Memorize "deflationary"

1. visualize
   

   - Imagine a balloon that is being slowly let down, representing the deflationary economy.

2. associate
   

   - Associate the word with the concept of prices going down.

3. mnemonics
   

   - Remember the acronym D-E-F-L-A-T-I-O-N which stands for 'Decrease in Every Factor Leads to An Increase in Output and New Trade'.

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