Most people have a good idea of what is m 1 by inflation. They know that it causes a sack full of groceries to cost more money. They know that buying Christmas p 2 costs more. They know that it is more expensive to eat 3 , to go to movie, to take a vacation, or to buy a car. They know they will be generally w 4 off in the future unless their pay can keep up with inflation.Inflation means that the general level of prices is rising. 5 is, enough commodity prices are rising so that, 6 the average, prices in general are rising. During inflation some commodities may be falling in price and some may be rising, but the commodities r 7 in prices are dominant, and they exert an upward force on the general price level.Inflation has dynamic and self-sustaining properties. Increases in the price level induce economic groups to react 8 rising prices, causing further increases in prices. For example, consumers e 9 increases in prices may increase current consumer spending, causing current market prices to rise. During periods of rising prices, produces are not inclined to resist increases in wages and other costs, since higher production costs may be shifted forward to consumers in the form of higher prices. These increases in prices, however, become the basis for further increases in production c 10 and still higher prices.