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Chapter 22: Q 35. (page 553)

Within 1 or 2 percentage points, what has the U.S. inflation rate been during the last 20 years? Draw a graph to show the data.

Short Answer

Expert verified

1 or 2 percentage points will affect the economy in a great way.

Step by step solution

01

Step 1. Definition

Inflation is a situation in an economy when the average prices of all the goods and services increased because of some market pressures.

02

Step 2. Explanation

yearsinflation rate
20012.8
20021.6
20032.3
20042.7
20053.4
20063.2
20072.8
20083.8
2009-0.4
20101.6
20113.2
20122.1
20131.5
20141.6
20150.1
20161.3
20172.1
20182.4
20191.8
20201.2

the graph is shown below:

According to the above table and graph, it can be inferred that the US has witnessed an uneven rate of inflation. This is also due to the 2008 crisis and after deflation.

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Most popular questions from this chapter

The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1=拢940, year 2=拢970, year 3=拢1000, and year 4=拢1070. Calculate two price indices, one using year 1 as the base year (set equal to 100) and the other using year 4 as the base year (set equal to 100). Then, calculate the inflation rate based on the first price index. If you had used the other price index, would you get a different inflation rate? If you are unsure, do the calculation and find out.

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