Deflation is

A) hyperinflation.
B) a constant rate of inflation.
C) a slow-down in the rate of inflation.
D) zero inflation.
E) a decline in the average price level

Deflation

A decrease in the general price level of goods and services, often indicating a contraction in the amount of money and credit in the economy.

Average Price Level

A general measure of price changes across the economy, indicating the cost of purchasing a typical basket of goods and services.