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Part one: 5% part two: 10% part three: a. If the inflation rate turned out to be higher than expected, then Sally is better off, and Harry is worse off. But if inflation turned out to be lower than expected, then Sally is worse off, and Harry is better off.
In economics, inflation is a general growth within the charges of goods and services in a financial system. When the general fee stage rises, every unit of currency buys fewer goods and offerings; consequently, inflation corresponds to a reduction in the shopping strength of cash. The opposite of inflation is deflation, a sustained decrease within the trendy rate stage of products and services. The commonplace measure of inflation is the inflation price, the annualized percentage change in a preferred price index. As costs do not all increase at an identical rate, the patron charge index (CPI) is often used for this cause. The employment price index is also used for wages inside the u.S.
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