The Traderszone Network

Published in TZ Latest News 29 October, 2016 by The TZ Newswire Staff

Prices Are Skyrocketing, But Only For Things You Actually Need

The way that economic data is presented, we often think of inflation as a singular number representing a general increase in prices.

For example, it might be reported that nominal GDP growth was 3%, and that inflation was 2%. Since the inflation represents a rise in price levels, we subtract it from the nominal rate to get a real GDP growth of 1%.

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