100 likes | 517 Views
INFLATION vs DEFLATION. … the fiction of money’s value. Inflation vs Deflation. Inflation – increase in prices of goods or services over time ( Video 2 ). Deflation – decrease in prices of goods or services over time. Deflation. Deflation - . Why is Deflation Worse?. Which is worse?.
E N D
INFLATIONvsDEFLATION … the fiction of money’s value
Inflation vs Deflation • Inflation – increase in prices of goods or services over time (Video 2 ) • Deflation – decrease in prices of goods or services over time
Deflation • Deflation -
Handout Questions/Definitions • Inflation makes the value of money go up/down • Deflation makes the value of money go up/down • Inflation makes getting a job easier/harder/has no effect • Deflation makes getting a job easier/harder/has no effect • Which is easier to control: Inflation/Deflation • Which is generally more serious: Inflation/Deflation • Because: (Deflationary Spiral) • Inflation is good forsomeone Selling/Buying • Deflation is good forsomeone Selling/Buying