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zheka24 [161]
3 years ago
13

Your grandmother tells you a dollar doesn’t go as far as it used to. She says the “purchasing power” of a dollar is much less th

an it used to be. Explain what she means. Try to use and explain terms like inflation and deflation in your answer.
Computers and Technology
1 answer:
Lady bird [3.3K]3 years ago
4 0
<span>What she means is that a dollar does not buy the same amount of things as it used to. Take a .05 cent candy as an example, in year one the candy costs 5 cents which means you can buy 20 candies. In year 2 the price is .08 cents and you can buy 1/.08 = 12.5 or simply 12 candies. Assuming the candy hasn't increased in quality, this is known as inflation.</span>
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