Inflation

Business andgovernment leaders also consider the inflation rate to be an important generalindicator. Inflation is a period of increased spending that causes rapid risesin

prices.________(51)yourmoney buys fewer goods so that you get________(52)for the same amount of moneyas before,inflation is the problem. There is a general

rise________(53)theprice of goods and services.Your money buys less.Sometimes people describeinflation as a time when"a dollar is not worth a dollar anymore".

Inflation is aproblem for all consumers.People who live on a fixed income are hurt the ________(54).Retiredpeople,for instance,cannot count on an increase in income as

prices rise. Elderlypeople who do not work face serious problems in stretching their incomesto________(55) their needs in time of inflation.Retirement income________

(56)any fixed incomeusually does not rise as fast as prices.Many retired people must cut theirspending to________(57)rising prices.In many cases they must stop________

(58)some necessaryitems,such as food and clothing. Even________(59)working people whose incomes aregoing up,inflation can be a problem.The________(60)of living

goes up,too.Peoplewho work must have even more money to keep up their standard of living.Justbuying the things they need costs more.When incomes do not

keep________(61)withrising prices,the standard of living goes down.People may be earning the sameamount of money,but they are not living as well because they are not

able to buy as manygoods and services.

Government unitsgather information about prices in our economy and publish it as price indexes________(62)the rate of change can be determined.A price index measures

changes in pricesusing the price for a________(63)year as the base.The base price is set at100,and the other

prices are reportedas a________(64)of the base price.A price index makes________(65)

possible to comparecurrent prices of typical consumer goods,for example,with prices of the same

goods in previousyears.

_________(62)

A.in which

B.of which

C.from which

D.by which