Cost of living Adjustment

Question: Define and fully explain inflation, and who does inflation hurt and who does it hurt the most?

Inflation: The Gov’testimate, (a good one) of the % change in the total market price of a weighted, adjusted common. Market basket of good/service, between two post time periods.

government (Gov)

• They should have a budget.
• American spend 10% on fast food.
• Is this $62,000 will buy you after 1 year what you can buy today.
• You should change your % in what you spend.

 C.D.L.A ‘s : Cost of living Adjustment
 They keep you from hurt.
 If you don’t have C.D.L.A ‘s you get full effect .

 Bank is the bad thing they follow wellstreet.
 Example: if you ask them for a loan $10,000 they well ask for $11,000.
 They just want there interest rate to be high.
 So they need your money.
 They are ware about inflation.

 A Businessman should higher his price.