Why is high inflation a concern for an economy, Macroeconomics

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Why is high inflation a concern for an economy

Problem

Article: "America still has an inflation problem"

Based on the article, answer the following:

1. Why is high inflation a concern for an economy?

2. Analyzing the chart in the article, what industries have contributed most to overall inflation? Why?

3. What is one cause of high inflation in the American economy presently? How is this linked to unemployment?

4. Americans see fuel prices as more indicative of price trends than do economists. Why might this be?

5. Explain this statement from the article: "In other words, only in the rosiest scenarios does it seem America can escape the inflation mire without lots of job loses."

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Macroeconomics: Why is high inflation a concern for an economy

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