Which among the following represents a fall in the prices?
1. Stagflation
2. Disinflation
3. Deflation
Select the correct option from the codes given below:

Answer: [C] Only 3

Stagflation, as you might know is a condition when economy isn’t growing but prices are. So, this option would be opted out. Next two are disinflation and deflation. Disinflation means rise in prices has slowed down significantly as compared with the previous year. This simply implies that prices don’t fall during disinflation also. Deflation is when the prices actually fall. Kindly note that deflation usually moves hand in hand with economic slowdown, lower productivity and loss of employments.

This question is a part of GKToday's Integrated IAS General Studies Module