For more business and finance explainers, check out our Yahoo U page. 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… Source link
Read More »How is inflation measured: Yahoo U
