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Explain
Audience
Adult
Example
Inflation means things in stores slowly get more expensive.
If a toy costs 1 coin today, and later it costs 2 coins, your coins can buy less than before. That is called losing buying power. Buying power means how much you can buy with your money.
It is a little like when your snack bag has fewer crackers inside, but the bag looks the same. You get less than before.