6 things you should know about inflation
Caleb Eades, Paulina Stamper
1.Inflation, it can affect you ability to buy things, prices can go up or down. This important because if affects your whole budget, if you do not have enough money for groceries because the price went up then you will spend money on that which will make it hard or impossible to pay other things in your budget.
2.When there is an inflation in gold and oil the housing market goes down making it cheaper to buy a house.Inflation of different things has an effect on other things. Like I stated in the first sentence, the inflation of gold and oil makes house prices go down. This is important because if inflation in gold and oil goes up to high then the housing market will be terrible.
3.Overall inflation isn't used as a long term solution to help the unemployment rate go down. But when used in a short run it can actual benefit the labor market.When inflation goes up it causes more jobs to be needed so more people can work. But if it stays that way for a long time then employers find a way to not pay as many people.
4. Inflation Is the steady increase in price of products. When inflation happens of a period of time the price of products steadily increases.
5.Inflation makes profit for investors, but is more expensive for consumers.This is a very good thing because if you investor loaned you the money then you can pay them back. Or everyone starts to make money and that makes them happy and they would keep investing in to your business so you could grow.
6.Reflation expands the economy and increases output of the country.Reflation expands the economy because it creates jobs for people to fill. It increases the amount of a product that needs to be supplied so there is more output.