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Definitions from the Web

Deflationary Spiral

Definition:

A deflationary spiral refers to a persistent and self-reinforcing decrease in prices and economic activity within an economy.

Senses:

1. Economics: A situation in which falling prices lead to a decrease in demand, resulting in further price decreases and economic contraction.

Usage:

As a noun:

The prolonged recession in the country led to a deflationary spiral, with consumers and businesses cutting back on spending due to anticipated future price declines.

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• Macroeconomics Books
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