What is inflation what are the causes of inflation

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Reference no: EM13923942 , Length: 1000 Words

Inflation is a measure of how prices have changed over time.  If prices are changing due to inflation, each dollar spent will buy less.

Questions:

1. What is inflation? What are the causes of inflation?  Is inflation desirable and what can be done to control inflation in a market economy?

2. What is the Consumer Price Index (CPI)?  How has the CPI behaved since the year 2000?  What have been the causes of these changes? In your response, include a graph of the CPI for this period and cite your source.

3. What is the Producer Price Index (PPI)?  How has the PPI behaved since the year 2000?  What have been the causes of these changes? In your response, include a graph of the PPI for this period and cite your source. 

Reference no: EM13923942

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