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A friend of yours called you and shared the following facts with you: According to the U.S. Bureau of Labor Statistics in July of 2022,
A friend of yours called you and shared the following facts with you: According to the U.S. Bureau of Labor Statistics in July of 2022, "Consumer prices increased by 9.1% over the year ended June 2022, largest increase in 40 years. Prices for food increased 10.4%, gasoline prices increased 59.9%, natural gas (piped utility gas) prices increased 38.4%, and electricity prices rose 13.7% for the 12 months." The friend also shared that the government intervened by changing the interest rate to control inflation and stabilize the economy. Then she asked you: What is so bad about inflation, and what would happen if inflation continues to rise? Do you think the government will increase or decrease the interest rate to control inflation? How would the change in interest rate affect prices, GDP, and employment in the economy
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