This essay sheds light on what is deflation, demystifies the different types of deflation, explicates what causes the occurrence of deflation in the economy, and expounds upon how the economy is affected by the occurrence of deflation in the economy. Succinctly stated, deflation is a term that delineates a reduction in the prices of products and services. A reduction in the prices of products and services amplifies the purchasing power of a fiat currency even though fiat currency is devoid of intrinsic value. The occurrence of deflation in an economy also amplifies the purchasing power of the people who are apart of the indebted economic class. Furthermore, the occurrence of deflation in an economy can also elevate the standard of living of the people who are apart of the indebted economic class. Moreover, the occurrence of deflation in an economy can also render it far less cumbersome for people who are apart of the indebted economic class to be able to generate enough revenue to be able to pay off their outstanding debts. The occurrence of deflation in an economy can immensely redound to the benefit of people who are apart of the indebted economic class. The amplification of the purchasing power of a fiat currency also concomitantly increases the purchasing power of the minimum wage. An annual increase to the minimum wage rate can further amplify the purchasing power of the minimum wage far more so in a deflationary economy than in an inflationary economy. There are a myriad of disparate types of deflation. Some of the different types of deflation encompass "demand-side deflation and supply-side deflation". One type of deflation is demand-side deflation. Demand-side deflation transpires when the prices of products plunge as a corollary of there being a decrease in aggregate customer demand for products at their retail prices. When there is a significant decrease in aggregate customer demand for products at their retail prices for a prolonged period of time, then companies may be all the more inclined to reduce the prices of their products in contexts in which they are eager to amplify their sales volume. When companies forgo reducing the prices of their products in contexts in which there is a significant decrease in aggregate customer demand for products at their retail prices for a prolonged period of time, then they undermine their sales volume potential and sales revenue potential. There are ample reasons as to why certain customers are reticent about paying retail prices for products. Another type of deflation is supply-side deflation. Supply-side deflation transpires when the prices of products plunge as a corollary of there being a significant increase in the product production output of companies that allows companies to produce far more sizeable quantities of products than there is aggregate customer demand for them at their retail prices. When there is an excess supply of products in the economy that customers are recalcitrant about purchasing at their retail prices, then companies may be all the more inclined to reduce the prices of their products in contexts in which they are eager to amplify their sales volume. It is far more lucrative for companies to sell a significantly higher quantity of products at a lower profit margin per product sold than sell a significantly lower quantity of products at a slightly higher profit margin per product sold. Companies should aim to significantly increase their product production output since doing so can help them to significantly amplify their sales volume and sales revenue. Amplifying their product production output, cannot only help companies to significantly amplify their sales volume and sales revenue, but can also help them to attain robust brand equity and amplify the size of their customer base. Furthermore, amplifying their product production output can also help companies to increase the size of their market share in the markets that they vie for market share in. Moreover, amplifying their product production output can also help companies to amplify their net income since doing so allows them to produce products in high enough quantities to satisfy pent-up customer demand for them at their retail prices. Companies can decrease their product manufacturing costs by leveraging artificial intelligence-powered industrial robots to manufacture their products. If companies that decrease the prices of their products are able to decrease their product manufacturing costs by leveraging artificial intelligence-powered industrial robots to manufacture their products, then they can maintain their profit margin per product sold as long as the percentage decrease in the prices of their products does not exceed the percentage decrease in their total product manufacturing costs. When companies resort to decreasing the prices of their products in order to further amplify their sales volume and sales revenue.