A persistently declining price level resulting from economic growth and unchanged aggregate demand is called secular deflation.
The term secular deflation means continuous or prolong decline in prices of goods and services resulting from economic growth in the presence of stable aggregate demand.
In an economy facing secular stagnation where deflation continues in a zero-interest rate environment, the value of purchasing power increases when prices fall. Thus, this happens if the quantity of cash is constant.
Hence, deflation is a decrease in the general price level of goods and services. A decline in aggregate demand typically results in subsequent lower prices.
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