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Advanced Placement (AP)
Bully
19 May, 10:35
What is the definition of inflation?
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Taniyah
19 May, 14:10
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I am assuming you are talking about market inflation, which is the rate in which goods and stocks prices rise. As a result of inflation, the purchasing power of a unit of currency falls. For example, if the inflation rate is 2%, then a pack of gum that costs $1 in a given year will cost $1.02 the next year. As goods and services require more money to purchase, the implicit value of that money falls.
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