Answer:
When there is a rise in prices - commonly known as inflation - it impacts the cost of standard living as the basic expenses could be too high to afford food, standard healthcare, energy, Government taxes, and housing etc.
Explanation:
Inflation is basically an economic activity that deals with the phenomena of increasing change of price or cost of certain things like food, gold and energy etc. and services over a certain period of time that may affect the entire economy depending upon certain factors.
Inflation can sometimes be effective in terms of economic recovery, and in certain case, indeed negative. A controlled inflation may indeed prosper economy at reasonable levels. A controlled inflation - reduced inflation - may increase the rate of employment, consumers having sufficient money to purchase goods and services, and ultimately benefiting the economy in terms of economic growth.
But, on the other hand, the economy could suffer drastically if inflation becomes too high. When there is a rise in prices - commonly known as inflation - it impacts the cost of standard living as the basic expenses could be too high to afford food, standard healthcare, energy, Government taxes, and housing etc. It can certainly produce an impact on business environment in terms of increasing the cost of doing proper business. It can easily impact certain other economical facet like mortgages, borrowing money, taking bank loans Government and corporate bond yields etc.
Keywords: inflation, price, services, goods
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