Business / Taxes / Deflation: Deflation, the opposite of inflation, is a gradual drop in the cost of goods and services, usually caused by a surplus of goods and a shortage of cash. Although deflation seems to increase your buying power in its early stages, it is generally considered a negative economic trend. That's because it is typically accompanied by rising unemployment, falling production, and limited investment.
Business / Accounting / Inflation: An increase in the general price level of goods and services: alternatively, a decrease in the purchasing power of the dollar. MORE