If your income stays the same, and the price increases, this will fall.

Question

Yael Pennington

Advanced Placement (AP)

22 December, 17:21

If your income stays the same, and the price increases, this will fall.

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Rylie Mercer · Answer 1

If your income stays the same and the price increases (that represents the inflation) then the buying power of the people falls. The same amount of money that was needed for buying certain things before the prices go up is now not sufficient for buying those same things after the prices went up, thus the buying power of the people falls.