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While the annual rate of inflation has fluctuated greatly over the last half century, ranging from nearly zero inflation to 23% inflation, the Fed actively tries to maintain a specific rate of inflation, which is usually 2-3% but can vary depending on circumstances (2006).
During inflationary times there are several accounting methods to choose from but the best one during this time I would say is general price level adjustment. Historical cost accounting is a traditional accounting method however it does not reflect changes during inflation times. General Price level adjustment does just that it adjusts prices accordingly to the time period and the economy...
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