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Periods in time that experience increasing price levels areknown as periods of: a. inflation b. recession...

Periods in time that experience increasing price levels areknown as periods of:
a. inflation
b. recession
c. depression
d. deflation
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Answer #1
A. Inflation

During times of inflation, the unit of currency loses itsvalue. Therefore, when buying materials/goods/services, onemust pay more. Historically in the US, inflation has rangebetween 1.5% and 10% over the past 50 years.

Inflation can have huge effects on wages, salaries,investments. All of the above are hurt by highinflation. As a result, US inflation is typically somethingthat is controlled by the Fed. Currently, because of thesoaring budget deficits, people are talking about future inflationrisks. While the Fed is aware of this, it views this risk asacceptable as the current economic situation is far more critical(in their opinion).

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