How Inflation Works

“If the price of a loaf of bread increases from $2 to $4 due to inflation, how does this affect the amount of bread you can buy with $10? Imagine you have $50 to spend on groceries. If inflation causes grocery prices to rise by 10%, will you be able to buy more, less, or the same amount of groceries with your $50? Explain your answer. Suppose you earn $20 per week. If inflation causes the price of your favorite snack to double, how will this impact your ability to buy that snack each week?”