* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Beginning Activity
Survey
Document related concepts
Fear of floating wikipedia , lookup
Full employment wikipedia , lookup
Business cycle wikipedia , lookup
Fiscal multiplier wikipedia , lookup
Great Recession in Russia wikipedia , lookup
Real bills doctrine wikipedia , lookup
Monetary policy wikipedia , lookup
Nominal rigidity wikipedia , lookup
Money supply wikipedia , lookup
Early 1980s recession wikipedia , lookup
Phillips curve wikipedia , lookup
Stagflation wikipedia , lookup
Transcript
Beginning Activities • Title today’s lesson: Inflation • Video Activity: Dr. Evil • Mission Statement: To prepare you for a life of responsible citizenship • Daily Expectations: – – – – – – – Use bathroom before class Come in quietly and get to work immediately Pay attention and be respectful No phones No food or drinks other than water Do your work Give AP quality effort • 5 bonus points for supplies Extra Credit • 5 points each 6 weeks for bringing supplies: – Paper clips – Pens – Paper – Staples – Tape Inflation Chapter 14 Economic Instability Degrees of Inflation • Creeping inflation – 1 to 3% per year • Galloping inflation – 100 to 300% per year • Hyperinflation – 500% and up – Ex. Hungary’s currency inflation went up to 828 octillion to 1 because it printed money to pay its bills. – What currency rule does that violate? Causes of Inflation • • • • Prices are pulled up by excessive demand. Federal government deficit spending pulls up demand. Rising input costs, specifically labor, increases prices. Unexpected increase in nonlabor inputs can increase prices. • Self-perpetuating spiral of wages and prices keeps going up and can’t be stopped. • When the monetary supply grows faster than the real GDP. Consequences of Inflation • Money has less value. • Change in spending habits, which disrupts the economy • Risky investments to take advantage of higher prices • Alters distribution of income because loans are paid back with inflated dollars. Ending Activity • • • • Measuring Inflation Finish any other work Make sure the floor is clean Connect to our objectives: How does this prepare you for life and the future?