Yesterday we discussed the problem of rising prices. In other
words, or in the (36) terms, it is regarded as inflation. We
noted that, during the (37) of inflation, all prices and
incomes do not rise at the same rate. Some incomes rise more slowly than the
cost of living, and a few do not rise at all. Other incomes, (38)
, rise more (39) than the cost of living.
We concluded that persons with fixed incomes, as for example, the
(40) who depend upon pensions, a person with slow-rising incomes
as, for example, an (41) with a salary agreed to in a
long-term (42) will be most seriously affected by inflation.
Please (43) that while their dollar incomes stay the same,
the cost of goods and services rises, and in effect, real income decreases; that
is (44) . We also talked about the fact
that (45) , since high prices would increase sales and
profits would likely rise faster then the cost of living. And
now, before we begin today’s lecture, (46)