Micro society Journal Week 8
Inflation and Recession
Inflation
Recession
Inflation means when prices
are rising and some of the
money are becoming worthless. It's bad because you need to bring stacks of money to the shops to buy a loaf of bread. You need to run to the bank to get your money just to buy food!
Recession means prices are falling so money is worth more. It is good because you only need to pay about 99 p for a loaf of bread. It is also bad because some businesses have to close down because they are not earning enough. This is because of the tax they need to pay.