) Inflation is said to occur when the average price level increases. Although government statisticians calculate changes in the average price level by using a variety of indexes, consumers often take notice as we go about our everyday lives. Increased prices at the grocery store, higher prices at the pump for gasoline and increases in our utility bills make us aware of price level changes even if we have not paid attention to what the indexes are saying.When we think about prices today we often feel that they have increased dramatically over the years. People sometimes reminisce about the “good old days” and the lower prices. Were things really better back then? Was everything so much cheaper? Let’s see!
In this week’s Discussion area, examine the following:
- Select two time periods, preferably about a decade apart. What changes happened during that time period that most surprised you? Why?