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Deflation - Coggle Diagram

- - - - Consumers expect prices to fall even more, so discourages spending from non essential goods
      - If increase in AS, increase NY with falling prices and increase C on G&S
    - - Fear of UE and income, increase savings, reduce borrowings, drop on MSOL
    - - Locals reduce spending, G&S not as demanded, may decrease employment
      - Exports increase as more price competitive, this may increase employment
      - If it is caused by increase in AS, likely to see higher lvls of employment
  - - - If deflation caused by AD, AD will fall more due to drop in I
      - If deflation caused by AS, may increase investments, higher levels of profits due to lower COP
    - - If deflation caused by AD, Reduced C, reduced DD, reduced production
      - If deflation caused by AS, increase in production as cheaper to produce
  - - - If caused by fall in AD, negative growth and increased UE, slowdown in Potential EG
      - If caused by increase in AS, increase in GDP, lower UE, greater FDIs, actual and potential EG increased
    - - If by fal in AD, lower C and I confidence
      - If by AS, increase C and I confidence