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Inflation in United States

United States economy is currently concerned with inflation. According to FREDS consumer price index has been on the rise since 1990.

The only point at which inflation seemed to maintain a constant rate was during the recent recession in 2008. Inflation is the general increase in price level in an economy and it is measured by the consumer price index. Increased prices mean that the purchasing power of the United States population is negatively affected. Consumes cannot afford the same basket of goods as they have before with the same level of income. Thus the purchasing power of the population is reduced (Frisch, 1990).

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