Access the current inflation rate as measured by the CPI at

Access the current inflation rate (as measured by the CPI) at the Bureau of Labor Statistics website:

http://www.bls.gov/

Based on this inflation rate, explain three different ways that this rate will impact different parties in the U.S. economy. Be specific in your answer.

Solution

Inflation rate = 4%

Production will increase with good budget and rise in price level and increase in exports

Production will be average with good credit to organisations

Production will decrease with high borrowings and high imports with low income

By,

Nishant Bhatt