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vlada-n [284]
3 years ago
13

Colby is a new college graduate who just started a job as an engineering trainee for a sizeable defense company. Now that he is

earning good money, he hopes to start saving for his first house and also make contributions to his retirement plan. As he looks over his monthly bills, Colby is concerned that he'll never get ahead of the game. His grocery bill, car payment, and mounting gas payments keep him in the "just making ends meet" group. As his mind wonders back to his college days, he reflects on a time when gas and food seemed a lot more reasonable. Chase is experiencing the effects of:___________
Social Studies
1 answer:
Fed [463]3 years ago
8 0

Answer:

Inflation

Explanation:

Inflation is defined as a general rise in price of goods and services in an economy. It can occur as a result of increase in cost of production of goods forcing suppliers to increase price in order to keep making profit.

Inflation can also occur because of increased demand for a commodity. Buyers are willing to pay more for the product.

Colby in the given scenario wanted to get a high paying job that would allow him to start saving for his first house and also make contributions to his retirement plan.

However because of high grocery bill, car payment, and gas payments he is unable to save.

During his college days gas and food were note affordable.

He is experiencing the effect of inflation that resulted in increase in price of food and gas

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