Inflation

Real World Example

In the Roman Empire, inflation became a major issue when the government started producing more coins with less silver, causing the value of money to drop. This change led to rising prices for goods and services, making it harder for people to afford everyday items. Inflation was important because it weakened the economy and contributed to the empire's eventual decline. Today, inflation still matters because it can decrease the purchasing power of money, affecting how much we can buy with the same amount of cash. For example, if inflation rises, the price of groceries might go up, meaning a family that once spent $100 on food now needs $120 to buy the same items.