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Chapter 9: Q 16. (page 243)

What has been a typical range of inflation in the

U.S. economy in the last decade or so?

Short Answer

Expert verified

Between 2 to 4 percent.

Step by step solution

01

Step 1. Definition

Inflation is the rate at which prices increase over a period of time. Inflation is a broad measure, such as the increase in prices or the increase in the cost of living in a country.

02

Step 2. 

Every country that keeps a check on its inflation has fixed a rate which is under various economists and statisticians. In the US this is generally 2% to 4%.

In 2009, the inflation rate was 2.7%, which increased to 3% in 2011. In the year 2016, the rate fell to 2.1%.

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Most popular questions from this chapter

Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the GDP deflator to convert from nominal to real would be more appropriate than using the CPI.

If, over time, wages and salaries on the average rise at least as fast as inflation, why do people worry about how inflation affects incomes?

Why do economists use index numbers to measure

the price level rather than the dollar value of goods?

Identify several parties likely to be helped and hurt

by inflation.

Why is the GDP deflator not an accurate measure of inflation as it impacts a household?
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