In the IS–LM model (investment and saving equilibriumliquidity preference and money supply equilibrium model), deflation is caused by a shift in the supply and demand curve for goods and services. This in turn can be caused by an increase in supply, a fall in demand, or both.
In the IS–LM model (investment and saving equilibriumliquidity preference and money supply equilibrium model), deflation is caused by a shift in the supply and demand curve for goods ,and services. This in turn can be caused by an increase in supply a fall in demand, or both.