Price_index

      Year Current price Base yr price Price index                2006 1 1 100    Price index = (Current price/Base yr   price)*100        2007 1.25 1 125                2008 1.34 1 134                2009 1.46 1 146               Consider the price index above. What are the values for A, B,   and C? Was there inflation from 2006 to 2009? If the price changes above   occurred for all goods across the economy during the four year period,   explain how nominal GDP and real GDP would differ.         

What is inflation, and how does it affect consumers? Is inflation always bad? Describe a situation where inflation is positive? 200 TO 300 WORDS