Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $10.00.
In year two, the price of the same basket is $9.00. From year one to year two, there is (deflation or inflation) at an annual rate of .
In year one, $50.00 will buy baskets, and in year two, $50.00 will buy baskets.
This example illustrates that, as the price level falls, the value of money (rises, falls or remains the same) .

Deflation

-10%

5

5.6

Rises

Explanation:

Deflation is the reduction in general price levels.

Price levels fell from $10 to $9, thus , deflation has occurred.

Inflation is a persistent rise in general price levels.

Annual rate of change in price level = ($9 / $10) - 1 = -0.01 = -10%

In year 1, $50, will buy $50 / 10 = 5 basket of goods.

In year 2, $50, will buy $50 / $9 = 5.56 basket of goods

As price level falls, the same amount of money can buy more basket of goods. Therefore, the value of money rises as price level falls.

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steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

you can put this in your 11 sentence summary

" most of the money would be invested in innovation, economic convergence."