Inflation

Concepts

• Inflation/Deflation
• Purchasing Power
• Market Basket
• Price Index
• CPI vs. GDP Deflator
• Criticisms of CPI
• Converting Past Dollar Values to Present.
• Nominal Values vs. Real Values (Interest Rates and Wages)
• Unanticipated Inflation/Deflation
• Costs of Inflation

Overview

Inflation can cripple an economy.  Extreme inflation, called hyperinflation, is powerful enough to not only destroy an economy but collapse governments and cause revolutions (ask Germany post WWI).  Due to the danger of inflation it is so important that we monitor it and do everything we can to keep it under control.  In this lesson,we learn all about inflation: how to measure it, its different types of measurements, even how to use it to convert past values to present values.  Then, we learn what separates real from nominal values and how to convert one to the other. And finally, we go into detail about unanticipated inflation/deflation and who gains and loses during times of each.

Materials

• Lecture Notes – 1
• Lecture Notes – 2
• Lecture Notes – 3
• Practice Problems

Lecture

Video Coming at Later Date

Quiz

Reminders Before Taking Quiz:

• When you are asked “What Period?” please only put the one digit number of your class period. For example, if you have this class 1st period, just put 1 in the box for your response.
• The password to login is CASE SENSITIVE, so please be conscious of this as you type in your password.
• If it appears to be timing out when you login, try the following troubleshooting steps:
  1. Restart your phone (hard shut down and turn it back on)
  2. Turn off WiFi (access quiz through your data carrier)
  3. Click the “Classroom Link” provided in the initial email. Login, and then select this quiz from the list.
  4. If you lost the email, you can access the “Classroom Link” by clicking here. Enter your email address and password to log in and PLEASE BE SURE TO SELECT THE PROPER QUIZ!!!
     1. If you take the quiz once and would like to take it again to get a better grade, sometimes it will disappear from the “pending” section. If that’s the case, click the “completed” section and select the quiz you want to retake.

CLICK HERE TO TAKE QUIZ