A period of falling prices is called:

The term that describes a period of falling prices is deflation. Deflation occurs when the general price level of goods and services decreases over time. This can lead to reduced consumer spending as people anticipate further price decreases, resulting in lower demand and potentially leading to economic stagnation.

Stagflation, on the other hand, refers to a situation where inflation and unemployment rise simultaneously, usually accompanied by stagnant economic growth. Disinflation means a reduction in the rate of inflation; prices may still be rising, but they are doing so at a slower rate. Inflation is the opposite of deflation, representing a general rise in prices over time.

Understanding these distinctions is fundamental in macroeconomics, as each term reflects different economic conditions and has distinct implications for monetary and fiscal policy.