INFLATION-is a rise in the general level of prices over time. It may also refer to a rise in the prices of a specific set of goods or services.

DEFLATION-is the opposite of inflation, therefore deflation means a decrease in the general price level

STAGFLATION-is a macroeconomics term used to describe a period of inflation combined with stagflation (slow economic growth and rising unemployment, possibly including recession)

2) I'm surprised to see that the CPI measures almost every kind of products consume by the people in the U.S

recession

recession is the decline in a country's gross domestic product, or negative real economic growth, for tow or more successive quarters in a year. http://www.american.com/archive/2007/december-12-07/the-great-recession-of-2008. i think that the U.S. is entering a recession because some prices of goods is going up and the governmetn is trying to prevent that, which means that a recession is starting.

The article is about a offer that Microsotf is giving to yahoo in regards of becoming part of them since they dont want any competition, Microsoft is offering $44.6 billion to yahoo but Mr. Yang is trying to come out with some solutions to save and still work as an independent company. I think that yahoo is going to give to Microsoft since they own a greater part of the internet but Mr. Yang's company is going to ask for more money.