Daniel De La Cruz

Rob Wilardson

Econ 1010

31 May 2022

Signature Assignment

Inflation can be defined as the general increase in prices and fall in the purchasing value

of money. When inflation happens, prices for goods and services and basic needs rise causing a

negative impact on society. The cause of inflation is when there is an increase in production

costs, including raw materials and wages. The Federal Reserve monitors inflation when it

happens and adjusts monetary policy. But inflation can also be beneficial to many people

including business and investors. Some businesses can benefit from this because if the demand is

high they can raise their prices and increase their profit. This can also help investors because if

they are invested in large companies they can also see a rise in their stock price thus increasing

their profits.

By researching and creating this signature assignment I learned a few things about

inflation that I didn’t know before. One thing that I learned was that inflation can be good

because it can increase production, it can increase employment and it can have improved

investment returns. Some of the strengths of my signature assignment are that I included a lot of

examples and definitions. Another thing is that I included the good and the bad of inflation and

how some people can benefit from it. One of the weaknesses of the signature assignment is that I

didn’t include any historical information about inflation or list statistical facts. All of it was just

more of a definition than facts. I didn’t really encounter any problems with this assignment but

rather thought it went quite smoothly.

 References

Fernando, J. (2022, May 13). What is inflation? Investopedia. Retrieved May 31, 2022,

from https://www.investopedia.com/terms/i/inflation.asp

Morrow, A. (2021, December 1). Why inflation can actually be good for everyday

Americans and bad for rich people. CNN. Retrieved May 31, 2022, from

https://www.cnn.com/2021/12/01/economy/inflation-good-bad-winners-losers/index.html

Team, T. I. (2022, May 23). What causes inflation and who profits from it? Investopedia.

Retrieved May 31, 2022, from

https://www.investopedia.com/ask/answers/111314/what-causes-inflation-and-does-anyone

-gain-it.asp