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Inflation and My Purchasing Power - Essay Example

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From the paper "Inflation and My Purchasing Power" it is clear that the meat can give the author a similar satisfaction as chicken; they are referred to as Giffen goods. Sometimes there are products that cannot be replaced or give him the same satisfaction as the product that he used to buy…

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Subject: Macro & Microeconomics
Type: Essay
Level: Undergraduate
Pages: 1 (250 words)
Downloads: 2
Author: jailynkeebler

Extract of sample "Inflation and My Purchasing Power"

The inflation will force me to do away with these products. However, it will not affect the prices of all the products equally. Sometimes the prices of gas may rise and the value of a motor vehicle remains the same.

Another impact it will have on my life is that it will make me buy more products now instead of later because I will be aware that the cost of products will rise in the future. However, in my case, I have no salary; therefore, my income neither increases nor reduces. This will mean that my buying power will still decline. I will be saving all my pocket money so that I can accumulate enough money to buy the clothes that I like. I will be very mean when it comes to spending money on unnecessary things such as alcohol, chocolates, or perfumes. In fact, I will be living a very meaningful life.

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