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 buys fewer goods so that you get______(52)for the same amount ofmoney as before,inflation is the problem.There is a general rise______

(53)the price ofgoods and services.Your money buys less.Sometimes people describe inflation asa 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).Retired people,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 income usuallydoes not rise as fast as prices.Many retired people must cut their spendingto______(57)rising prices.In many cases they must stop______(58)some

necessary items,suchas food and clothing. Even ______(59)working people whose incomes are goingup,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 asmany

goods 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 reported as a______(64)of the base price.A priceindex

makes______(65)possibleto compare current prices of typical consumer goods,for example,with prices ofthe same goods in previous years.

_________(52)

A.much

B.little

C.more

D.less