Cloze Test – Test 37

In the following passage, there are blanks, each of which has been numbered. Find out the appropriate word/phrase in each case.

In economics, deflation is a (21) in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the real value of money over time; conversely, deflation increases the real value of money - the currency of a national or regional economy. This allows one to buy (22) goods and services than before with the (23) amount of money. Economists generally believe that deflation is a problem in a modern economy because it may increase the real value of debt, especially if the deflation was unexpected. Deflation may also (24) recessions and (25) to a deflationary spiral. Deflation is distinct from disinflation, a slow-down in the inflation rate, i.e. when inflation declines to a lower rate but is still positive.

In the following passage, there are blanks, each of which has been numbered. Find out the appropriate word/phrase in each case.

In economics, deflation is a (21) in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the real value of money over time; conversely, deflation increases the real value of money - the currency of a national or regional economy. This allows one to buy (22) goods and services than before with the (23) amount of money. Economists generally believe that deflation is a problem in a modern economy because it may increase the real value of debt, especially if the deflation was unexpected. Deflation may also (24) recessions and (25) to a deflationary spiral. Deflation is distinct from disinflation, a slow-down in the inflation rate, i.e. when inflation declines to a lower rate but is still positive.

In the following passage, there are blanks, each of which has been numbered. Find out the appropriate word/phrase in each case.

In economics, deflation is a (21) in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the real value of money over time; conversely, deflation increases the real value of money - the currency of a national or regional economy. This allows one to buy (22) goods and services than before with the (23) amount of money. Economists generally believe that deflation is a problem in a modern economy because it may increase the real value of debt, especially if the deflation was unexpected. Deflation may also (24) recessions and (25) to a deflationary spiral. Deflation is distinct from disinflation, a slow-down in the inflation rate, i.e. when inflation declines to a lower rate but is still positive.