Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter13: Measuring The Economy's Performance
Section: Chapter Questions
Problem 12AA
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Question
Define the term future inflation?
Expert Solution
Step 1
Inflation is the process of increasing the overall general price level in the economy in a given period of time. The prices of the commodities and services will keep increasing drastically such that too much of money will chase too few commodities and services from the economy. Thus, the goods and services that a unit of currency can purchase from the market will fall indicating the fall in the real value of money in the economy.
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