第二篇: What is inflation? Inflation is often called “too many dollars chasing too few goods.” It’s when prices in a
country rise across the board. If the prices of your snack, bread, gasoline, and many other things all rise at the
same time, that’s inflation. Inflation means your money buys less than it used to.
Experts have different views on why and how inflation happens. One reason for inflation is an increase in
the supply of money. Generally, when the supply of something goes up, the demand for it goes down. In other
words, its value goes down. So when there is a lot of money circulating, each piece of money becomes less
valuable. Another cause of inflation is a rise in production costs. This means it costs more money to make a
particular product. The price of a candy bar may go up if the nuts in it are suddenly more expensive or if the
workers making it are paid higher wages. Higher taxes can also cause inflation. When items are taxed, people
who produce goods don’t want to see their profits go down. Instead, they raise their prices. This is called
“transferring the burden to the consumer.”
Inflation is complicated. Track the prices of some goods you are interested in, and see if you can understand
why they’ve changed over time.
【題組】49. According to the article, which of the following might cause the price of corn to increase?
(A) A sudden drop in inflation.
(B) An increase in seed prices.
(C) A farm technology breakthrough.
(D) Less money circulating in the country.