if inflation rises with the rise in the income of the people.... then what causes deflation... as...

Question

if inflation rises with the rise in the income of the people.... then what causes deflation... as
deflation is opposite of what inflation is.. but income of an individual is always a upward moving
curve.. it never falls.. because people always accept more salary but they turn furious if the
income falls. and the industries cannot afford the consequences.. so they never decreases their
salary.. so my question is what actually causes deflation..?? is it more supply in the market yet no
one is ready to buy it... or something else
Answer:
Deflation is defined as the persistent fall in general price level. There are many factors which
causes deflation.
1. The most important factor causing deflation is collapse of aggregate demand....

Robert · Accepted Answer

if inflation rises with the rise in the income of the people.... then what causes deflation... as 
deflation is opposite of what inflation is.. but income of an individual is always a upward moving 
curve.. it never falls.. because people always accept more salary but they turn furious if the 
income falls. and the industries cannot afford the consequences.. so they never decreases their 
salary.. so my question is what actually causes deflation..?? is it more supply in the market yet no 
one is ready to buy it... or something else 
Answer: 
Deflation is defined as the persistent fall in general price level. There are many factors which 
causes deflation.  
1. The most important factor causing deflation is collapse of aggregate demand.

if inflation rises with the rise in the income of the people.... then what causes deflation... as deflation is opposite of what inflation is.. but income of an individual is always a upward moving...

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