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DO NOW:

DO NOW:. What are some products that you buy? Think back over the last few years, have the prices of those goods (and services) remained constant? Have they gone down? Have they gone up? Make a list of products that now cost you more money. What is Inflation?.

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DO NOW:

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  1. DO NOW: What are some products that you buy? Think back over the last few years, have the prices of those goods (and services) remained constant? Have they gone down? Have they gone up? Make a list of products that now cost you more money.

  2. What is Inflation? • Inflationis an increase in the general level of prices. • Inflation reduces the “purchasing power” of money • Examples: • It takes $2 to buy what $1 bought in 1982 • It takes $6 to buy what $1 bought in 1961 • When inflation occurs, each dollar of income will buy fewer goods than before.

  3. As you watch this short clip, try to ID all possible causes of inflation. What causes inflation? http://www.youtube.com/watch?v=WZ_OyroIQc0

  4. Historic Inflation Rates

  5. INFLATION Country and Year: Zimbabwe, 2008 Annual Inflation Rate: 79,600,000,000% Time for Prices to Double: 24.7 hours

  6. How does hyperinflation affect the economy? When does inflation become a concern?

  7. Inflation and College CostsWhy is the cost of college so high?Why is it rising twice the rate of inflation?http://www.fox11online.com/dpp/news/local/on_assignment/cost-of-college-far-outpaces-inflation

  8. The average cost of college: 2012-13 • Source: The College Board's Trends in College Pricing 2012 and Trends in Student Aid 2012 reports.

  9. Turn ‘n Talk with your partner and then answer on a sheet of paper: • Why are the cost of college and the price of textbooks rising significantly faster than inflation? • Are the current inflated prices of college and college textbooks worth the enormous cost? • How would you reduce the cost of college and college textbooks? Propose at least 3 ways to reduce these costs.

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