The cause of deflation Or causing the prices of goods and services decline came from both the supply side (Supply. side) and demand (Demand. side) On the supply side, including the addition of a great harvest in a short time, which may be due to an increase in productivity of technological development or have a vast amount of cheap labor into the labor market. All these things would make the cost of manufacturing declined. As a result, prices of goods and services are generally lower as well.
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