Which statement best describes what high inflation indicates about an economy? The purchasing power of a dollar remains the same as 15 years ago, so high inflation has no impact on the economy.
A worker’s salary today will buy the same amount of groceries for the same price as 10 years ago.
Rising costs in housing, food, and utilities will likely have a negative impact on a family’s standard of living.
The government will not work to manage inflation when it is at high levels since there is no policy that has proven to be effective.