ECONOMIC ARTICLE
Nama : Dayana Budi Sabilla Kelas : 1EA35 NPM : 12214569 Inflation - Causes and Effects Older people often talk about how cheap things were when they were young. (1)A brand new car may have cost only $5,000 compared to $20,000 today, or petrol that cost only a few cents in the 60s costs over a dollar today. (2)Inflation happens when money loses some of its value. We measure the rise of inflation in percent. (3)For example, 2% inflation means that a $1 bottle of milk will cost $1.02 next year. Causes of Inflation Inflation has many causes. (4)In times when the economy is good and people have enough money they want to buy more products than factories can produce, so the prices go up. (5)Inflation can also happen when worker’s demand more money or when theraw materials that producers need rise in price. The end product becomes more expensive and has to be sold at a higher...