What is a decrease in the general level of prices of goods and services

The decrease in the general level of prices of goods and services is called deflation.

Explanation:

Deflation is a fall in prices, as opposed to inflation. It happens when weak demand causes an oversupply in the market. With falling prices, income from capital and labor also falls. Businesses must reduce or close while employees become unemployed, or must accept a lower payment. Falling incomes have a stronger effect on declining demand. At the same time, the fall in prices also increases the value of money. The real interest rate will thus be greater than the nominal interest rate. With general expectations of further price declines, people will tend to save up to pick up the potential wealth gain. The result can be a very large decline in production and consumption. This happened with the depression in the 1930s, when there was a sharp deflation.  

b.

explanation:

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