Barbara buys the same market basket each week and spends $60 on it. This week Barbara brought $60 to the store but could not buy her usual market basket. One explanation for this is . rev: 05_30_2018 Multiple Choice she became unemployed there was an increase in real GDP there was inflation the GDP price index has decreased

there was inflation

Explanation:

Inflation may be defined as the rise in the price or the increase in the cost of a product or commodities in the market. It is when you pay more price for the same commodity that you have bought it in a less price earlier.

When there is inflation, the price of goods in the market increases.

In the context, Barbara usually buys the same market basket every week at a price of $ 60. But this week she could not buy the market basket even though she had $ 60 with her. This is because the price of the market basket increased this week due to inflation and now cost more than $60. So Barbara could not buy the market basket.

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