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AGGREGATE MARKET: An economic model relating the price level and real production that is used to analyze business cycles, gross domestic product, unemployment, inflation, stabilization policies, and related macroeconomic phenomena. The aggregate market, inspired by the standard market model, captures the interaction between aggregate demand (the buyers) and short-run and long-run aggregate supply (the sellers).
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                           DISINFLATION: A decline in the inflation rate. With disinflation, prices continue rising, just not as fast. Numerically speaking, disinflation occurs if the inflation rate over three consecutive years is 10 percent, 6 percent this year, and 4 percent. Disinflation, a reduction in the inflation rate, is not the same as deflation, which is an actual decline in the price level. Should disinflation continue, presumably due to anti-inflationary monetary or fiscal policies, then the average price level might eventually decline, making the transition from disinflation to deflation. Inflation Rate |  | Disinflation generally comes into popular use when inflation has been relatively high and troublesome for a period of time and people are looking for any sign of relief. As such, a decrease in the inflation rate is taken as good news. However, disinflation is actually a relatively common phenomenon associated with business cycles. As this chart of inflation rates over the past few decades illustrates, inflation invariably declines during business-cycle contractions (shaded areas).During the contraction of the early 1990s, disinflation brought the inflation rate down from about 6 percent to just over 2 percent. An even more dramatic example of disinflation resulted from the contraction of the early 1980s. The inflation rate declined from over 14 percent to under 4 percent. In fact, this particular contraction was created with contractionary monetary policy by the Federal Reserve System with the expressed goal of reducing the high inflation rates that characterized the 1970s, that is, to achieve disinflation.
 Recommended Citation:DISINFLATION, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2022. [Accessed: May 17, 2022]. Check Out These Related Terms... | | | | | | | | | | | Or For A Little Background... | | | | | | | | | | And For Further Study... | | | | | | | | | | | | | | Related Websites (Will Open in New Window)... | | |
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RED AGGRESSERINE [What's This?]
Today, you are likely to spend a great deal of time strolling through a department store looking to buy either a toaster oven that has convection cooking or a birthday gift for your mother. Be on the lookout for bottles of barbeque sauce that act TOO innocent. Your Complete Scope
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The 22.6% decline in stock prices on October 19, 1987 was larger than the infamous 12.8% decline on October 29, 1929.
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"Try not to become a man of success but rather to become a man of value. " -- Albert Einstein
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IRPP Institute for Research on Public Policy
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