Adjusting for Inflation
As inflation raises the overall price level in an economy, the purchasing power of the dollar decreases and both borrowing and lending costs increase. The January 2023 issue of Page One Economics® discusses how price indexes can be used to transform nominal wages and interest rates into real, or inflation-adjusted, values.
Teachers: Visit the Reading Q&As in our Econ Lowdown Teacher Portal to find the high school/college teacher editions (including an answer key) for this issue; to assign an online version of the student materials; and to collect student scores on the questions.
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