Select a macroeconomic topic and respond to the article in Word (Times New Roman, 12-point pitch double spaced)

Inflation is one of the major topics in microeconomics. Ideally, it is concerned with the effects of inflation in the economy. Inflation refers to the quantitative measure of the rise in prices of commodities in the economy over some time. Inflation is an indicator of a decline in the purchasing power of a currency. The fact is attributed to the idea that the rise in prices leads to loss of a currency's value as it purchases fewer goods and services. In other words, it signals undesirable performance of the economy.

Inflation is a macroeconomic concern due to its negative implications on the economy. Notably, inflation discourages investments due to lack of confidence in the currency among investors. Consequently, reduced investments lower economic growth leading to high levels of unemployment as well as poor living standards. As thus, the government should maintain inflation at the lowest possible levels in order to promote economic growth.