Statement I: Deflation and disinflation are virtually identical.
Statement II: Inflation got progressively worse through most of the 1980s.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Deflation

A decrease in the general price level of goods and services in an economy over a period, leading to increased purchasing power of the currency.

Disinflation

A reduction in inflation rate, signifying a deceleration in how quickly the costs for goods and services increase.

Inflation

The progression speed of the general price index for goods and services, diminishing the effective value of money.