How is inflation measured: Yahoo U

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If you’ve noticed that the price of the same basketball has increased over time, you’re observing inflation.

Inflation is a major component to macroeconomics with serious implications. High inflation across an economy can rapidly devalue the purchasing power of your dollar. But deflation (when prices decline) can signal a shrinking economy.

For policymakers that therefore want to keep a delicate balance of low but stable…


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