The Economic Goal of Price Stability
Simulate a consumer's experience when dealing with unstable prices.
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Have you ever been shopping and noticed that the prices of a range of things you buy have gone up? If the same things in your shopping basket cost $100 last year and now they cost $105, at a very basic level, that’s “inflation.” In this video assignment, students will learn what is and what is not inflation.
What is inflation? In life, you buy things all the time. You probably notice that gradually the cost of items tends to increase. This is known as inflation, but what exactly does inflation mean? We've all gone to the store and seen a price rise like with these oranges. So is that alone a sign of inflation? Well, it depends. Let's look at another example with these lemons. Prices can go up or down for many reasons. For instance, lemons may go up in cost because of a freeze that reduces supply. But this type of increase is just temporary. Once growing conditions return to normal, the price goes back down to its previous level showing this was not inflation. Inflation occurs when not just in one category, but across the entire economy, prices of many goods and services trend upwards over time. So now you know, but should you care, absolutely catch our next episode to see why.
The Economic Goal of Price Stability
Simulate a consumer's experience when dealing with unstable prices.
Infographic Posters
Infographics for your classroom
Inflation
Learn about inflation, disinflation, and deflation.
Beyond Inflation Numbers: Shrinkflation and Skimpflation
Define shrinkflation and skimpflation.
Market Basket
Interpret the effects of inflation on consumers.
Calculate Your Lifetime Inflation Activity
Learn how to measure changes in inflation over a lifetime.
Why Should You Care About Inflation?
Explain how inflation affects consumers' incomes, spending, and wages.
Why Does the Fed care about inflation?
Explain what happens when inflation gets out of control.
Disinflation, Explained!
Explain disinflation and how it differs from deflation.
Shrinkflation, Explained!
Introduce the term "shrinkflation".
Stagflation, Explained!
Introduce the term "stagflation".
Hyperinflation, Explained!
Introudce the term "hyperinflation"
Deflation, Explained!
Introduce the term "deflation".
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