Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 9: Q 17. (page 243)

Over the last century, during what periods were the

U.S. inflation rate highest and lowest?

Short Answer

Expert verified

There is more than one instance when this happens.

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.

In 1970 inflation in the US was at its highest level. This is because of various reasons like central bank policy, Keynesian economic policy, the abandonment of the gold window, etc. all contributed to this.

And in 1930 inflation in the US was at its lowest. This is because of the reasons like because of feds policies and at that time most banks were unregulated and uninsured.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

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

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

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

Imagine that the government statisticians who calculate the inflation rate have been updating the basic basket of goods once every 10 years, but now they decide to update it every five years. How will this change affect the amount of substitution bias and quality/new goods bias?

Identify several parties likely to be helped and hurt

by inflation.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free