Question

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 than it used to be. Explain what she means. Try to use and explain terms like inflation and deflation in your answer.

Answer 1

Things cost more then they used to. inflation has raised the price of things. you could buy a candybar for a quarter now it has inflated fo $1.00. The dollar has deflated in value. jt is not worth as much.