Chapter 30

Chapter 30 talks about inflation. Inflation is when  price levels increase due to a new influx of currency. The item still holds the same value, but now the value of the currency goes down because there is more of that currency. Since the value of the currency is now lower it takes more to buy something of  a certain value. The people still hold the same demand for things, it's juts the value of the money that changes. In the U.S inflation is pretty common, using CPI and GDP economists have calculated that over the past 70 years prices have inflated 4% annually. The opposite of inflation is called deflation, which is where price levels lower. An extreme case of inflation is called Hyperinflation in which there is an extraordinarily high rate of inflation. For example in 2008 in Zimbabwe the inflation rate was 24,000 percent. I'd give this chapter a 2 out of 3. There really going more in depth on inflation and that leads to some complications.