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Deflationary for Dummies

adjective

pronunciation: dɪ'fleɪʃə,nɛri

What does Deflationary really mean?

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Hey there! So, the word "deflationary" can seem a little tricky, but I'm here to help break it down for you. Think of it like this: when there's deflation, things like prices and values go down instead of up. It's kind of like when you let the air out of a balloon, the balloon gets smaller.

So, "deflationary" basically means that things are getting smaller or decreasing in value. For example, when the prices of things like groceries or clothes go down, that's a kind of deflation. It's like a sale at a store, where things are cheaper than usual.

Another way to think about it is that "deflationary" is the opposite of "inflationary." When there's inflation, prices and values go up, but when there's deflation, they go down. It's like a see-saw, going up and down.

In economics, "deflationary" can also refer to when there's a decrease in the general level of prices for goods and services in an economy. This can sometimes happen when there's less demand for things, which can lead to businesses lowering their prices to attract customers.

So, to sum it up, "deflationary" means things are getting smaller or decreasing in value, kind of like a balloon losing air or prices going down in a sale. It's the opposite of "inflationary," and it can also refer to a decrease in the general level of prices in an economy. I hope that helps you understand the word "deflationary"!

Revised and Fact checked by Nicole Thomas on 2023-11-15 06:09:52

Deflationary In a sentece

Learn how to use Deflationary inside a sentece

  • During a deflationary period, prices for goods and services may decrease, causing consumers to hold off on making purchases.
  • The deflationary environment led to a decrease in wages and job layoffs as businesses struggled to stay afloat.
  • Deflationary pressures can have a negative impact on the economy, leading to reduced spending and investment.
  • The central bank implemented deflationary policies to combat inflation and stabilize the economy.
  • The deflationary effect of increased competition in the market resulted in lower prices for consumers.

Deflationary Antonyms

Words that have the opposite context of the original word.

Deflationary Category

The domain category to which the original word belongs.