Question

In an article in the Wall Street Journal​, a professor of financial planning noted the effect of rising prices on purchasing​ power: "Today,​ $2,000 a month seems reasonable​ [as an income for a retired person in addition to the​ person's Social Security​ payments], but 40 years from now​ that's going to be three cups of coffee and a​ donut."

Answer 1

Answer:

The answer is: Inflation rate

Explanation:

Inflation rate measures the rate at which the average prices in an economy increases over time.

As the general level of prices rise in an economy, a unit of currency buys less than it did before. For example, 100 years ago you could buy a new car for less than $300.