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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

What is indexing?

The Consumer Price Index is subject to the substitution bias and the quality/new goods bias. Are the Producer Price Index and the GDP Deflator also subject to these biases? Why or why not?

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