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    Is this right?

    INFLATION = "too much money is chasing too few goods"

    DEFLATION = "too little money is chasing too many goods"


    Can someone please tell me if I've understood it correctly or if I've made a mistake?

    Thanks!

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    yep.
    Inflation: general and persistent rise in prices
    Deflation: unexpected fall in prices - can be a number of factors causing it
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    (Original post by Bill_Gates)
    yep.
    Inflation: general and persistent rise in prices
    Deflation: unexpected fall in prices - can be a number of factors causing it
    Thank you!
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    (Original post by emilie18)
    Is this right?

    INFLATION = "too much money is chasing too few goods"

    DEFLATION = "too little money is chasing too many goods"


    Can someone please tell me if I've understood it correctly or if I've made a mistake?

    Thanks!

    You've described demand-pull inflation rather than inflation in general! On my OCR paper it's always been "a sustained rise in the general price level (over a period of time". Or do your exam board not really distinguish between D-Pull and C-Push?
 
 
 
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