While small changes in the price level from year to year may not be that noticeable

While small changes in the price level from year to year may not be that noticeable

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While small changes in the price level from year to year may not be that noticeable, over  time, these small changes add up, leading to big effects. Over the past 70 years, the  average rate of inflation in the United States from year to year has been a bit under 5  percent. This small year-to-year inflation level has led to a 30-fold increase in the overall  price during that same period.  Inflation plays an important role in the macroeconomic economy by changing the value  of a dollar across time. This section on inflation will deal with three important aspects of  inflation. First, it will cover how to calculate inflation. Second, it will cover the effects of  inflation calculations using the CPI and GDP measures. Third, it will introduce the  effects of inflation.  Calculating inflation  Inflation is the change in the price level from one year to the next. The change in 
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While small changes in the price level from year to year may not be that noticeable

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