Disinflation occurs when

A) the rate of inflation rises.
B) the rate of inflation declines.
C) the price level declines.
D) the price level stays the same.

Disinflation

The process of slowing down the rate of inflation, resulting in a decrease in the general price levels of goods and services over time.

Inflation

The frequency at which the overall pricing of goods and services heightens, eroding the ability to buy.

Price Level

A measure indicating the average price of goods and services in an economy, often compared over time to assess inflation or deflation.