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)

your money buysfewer goods so that you get_______(52)for the same amount of money asbefore,inflation is the problem. There is a general rise_______(53)the price of

goods andservices.Your money buys less.Sometimes people describe inflation as a timewhen"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).Retired people,for instance,cannot count on an increase in incomeas

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 incomesare going up,inflation can be a problem. The_______(60)of living goes

up,too. People whowork must have even more money to keep up their standard of living. Just buyingthe things they need costs more.When incomes do not keep _______

(61)with risingprices,the standard of living goes down.People may be earning the same amountof money,but they are not living as well because they are not able to buy as

many goods andservices.

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 reported as a_______(64)of the base price.A price

indexmakes_______(65)possible to compare current prices of typical consumergoods,for example,with prices of the same goods in previous years.

_________(56)

A.or

B.and

C.excluding

D.including