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Context 33 - Consumer Price Index and Inflation

Last updated over 1 year ago
27 questions
Note from the author:
MMR Resources
1

Do a Google search for the average cost of a home in Ohio in 2023. Enter your answer below.

1

Click here to open the Inflation Calculator.
Using your answer from #1, what was the cost of the same home in 2006?

1

Using your answer from #1, what was the cost of the same home in 1989 (your teacher's birth year)?

1

What's the average income in the state of Ohio?

1

Click here to open the Inflation Calculator.
Using your answer from #4, what income would you have to earn in 2006 to have the same buying power?

1

Click here to open the Inflation Calculator.
Using your answer from #4, what income would you have to earn in 1990 to have the same buying power?

1

Click here to open the Inflation Calculator.
Using your answer from #4, what income would you have to earn in 1960 to have the same buying power?

1

What was the cost of a gallon of gas in 1970?

1

Click here to open the Inflation Calculator.
Using your answer from #8, what is that equivalent to in 2023?

1

What was the cost of a 4 year college degree in 1990?

1

Click here to open the Inflation Calculator.
Using your answer from #10, what is that equivalent to in 2023?

1

Now look up what the actual cost of a 4 year college degree is in 2023.

1

Write a one-paragraph summary describing what you learned from this activity.

  1. Go to an online search engine and search for “inflation winners and losers ”
  2. Read articles (not paid advertisements) that describe how people are impacted by inflation.
  3. When you are done reading, complete the questions below by describing three examples of inflation winners and losers and how they are positively or negatively impacted by inflation
1

What is one group that benefits from inflation?

1

Explain how your group in #14 benefits from inflation.

1

What is one group that is harmed by inflation?

1

Explain how your group in #16 is harmed by inflation.

1

To calculate the future cost of a product or service due to inflation, people need to know everything except the...

1

An increase in the general level of prices for goods and services in the economy that causes changes in consumer buying power is referred to as _____ risk.

1

Who is hurt most by inflation?

1

To determine how long it takes for prices to double, divide 72 by the assumed inflation rate. This is called the Rule of 72. If a 4% inflation rate is expected, how long will it take for prices to double?

1

Deflation is generally not considered desirable because

1

Everyone loses money when the U.S. inflation rate increases

1

The U.S. inflation rate is measured by the Consumer Price Index or CPI.

1

U.S. inflation rates have been in the double digits (i.e., 10% or higher) in the past.

1

The longest period of deflation (i.e., negative inflation) in the U.S. in the 20th century was during the Great Depression years of the 1930s.

1

One of the causes of inflation is low demand for products and services.