5.5.1 - On Consumers
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Practice Questions
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What is purchasing power?
💡 Hint: Think about what your money can actually buy.
Who is most affected by inflation?
💡 Hint: Consider those who earn a consistent amount.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does inflation do to purchasing power?
💡 Hint: Consider how much food costs now compared to a few years ago.
True or False: Fixed-income groups are less affected by inflation.
💡 Hint: Think about how inflation impacts their fixed budget.
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Challenge Problems
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Calculate what percentage decrease in purchasing power occurs if prices rise from $200 to $220.
💡 Hint: What is the formula for finding percentage changes?
A retiree has a fixed monthly income of $1,500. If inflation raises prices by 5% next year, how much will their income effectively reduce in purchasing power?
💡 Hint: How do you calculate the effect of a percentage increase on fixed income?
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