Respuesta :
Deflation can lead to decreased output .
Deflation is a general decline in prices for goods and services, typically associated with a contraction in the supply of money and credit in the economy.
Deflation can lead to decreased output in a way that the demand of goods is way too high therefore the purchasing power is elevated. And the prices of goods is also lower.
Additionally, manufacturers may get skeptical about producing goods due to the low prices for the goods that affect them.
Although, it may seem like the fact that prices are lower is good, deflation can drastically affect the economy and lead into recession and depression.
For more about Deflation refer here; https://brainly.com/question/28564835
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