Inflation
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Inflation
Economics 360
March 23, 2004
Week 2
Abstract
Inflation and how it affects us in everyday life. It plays a major roll in retirement, and daily activities. From gas prices to health care the cost of living can be higher then consumers can afford. In society supply and demand is what drives the economy and inflation is what controls it. Inflation is a roller coaster that never ends.
Inflation
The biggest threat in meeting your retirement goals or other financial goals is inflation. Inflation is the increase in the cost of living, expressed as a percentage increase over last year's prices. A person may not pay much attention to inflation while they are working because wages tend to rise with inflation. But when a person stops working, there income becomes more or less fixed, making inflation a major issue. Even small changes in inflation will make a huge difference in the amount of money you need throughout retirement...