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Exam Series 6 All Questions

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Exam Series 6 topic 1 question 69 discussion

Actual exam question from FINRA's Series 6
Question #: 69
Topic #: 1
[All Series 6 Questions]

A general decrease in price levels in the economy is referred to as:

  • A. disinflation.
  • B. stagflation.
  • C. recession.
  • D. deflation.
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Suggested Answer: D 🗳️
A general decrease in price levels in the economy is referred to as deflation. Disinflation refers to a decrease in the rate of inflation, but price levels in general are still rising. Stagflation refers to an economic condition characterized by high levels of inflation and high unemployment levels. A recession is a prolonged decline in the general economy, typically measured by a decline in the nations gross domestic product (GDP).

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