Answer:
see below
Explanation:
As the economy grows, prices tend to increase automatically. Inflation is the term that describes the general increase in prices in an economy over time. Inflation weakens the purchasing power of a currency. An increase in prices means that a dollar will buy fewer goods and services than before the price increase.
People worry when the inflation rate is going up, and incomes remain constant. They also worry when the rate of inflation is higher than the rate of income increment. The reason for the worry is because inflation reduces the purchasing power of money. When prices go up, and the salary is constant, it means the same income will achieve fewer purchases than before. Should the inflation rate be higher than the rate of income increment, then, people's ability to buy is also reduced.
For people not to worry, the inflation rate should be lower than the rate of income increment. if the inflation rate is higher, the effect is the same as a salary
