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Unformatted text preview: real GDP rises, etc. 3. The government would be helped by inflation. If the government owes 500 dollars but inflation went up, the debt would be worth less. 4. Nickie's salary rose by 16.66%, but inflation rose 25%. So Nickie is hurt by inflation because she has less purchasing power. 5. First, I found total of both market baskets, 83 and 98. Then I found the price index for 2007 and 2008, 100 and 118. Found the inflation rate, which is 18%. Then I checked the percent increase with the market basket increase. The answer is 18%....
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This note was uploaded on 09/24/2011 for the course ECON 32342 taught by Professor Macst during the Spring '11 term at Delaware Tech.
- Spring '11