Do a Google search for the average cost of a home in Ohio in 2023. Enter your answer below.
Question 2
2.
Click here to open the Inflation Calculator.
Using your answer from #1, what was the cost of the same home in 2006?
Question 3
3.
Using your answer from #1, what was the cost of the same home in 1989 (your teacher's birth year)?
Question 4
4.
What's the average income in the state of Ohio?
Question 5
5.
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?
Question 6
6.
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?
Question 7
7.
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?
Question 8
8.
What was the cost of a gallon of gas in 1970?
Question 9
9.
Click here to open the Inflation Calculator.
Using your answer from #8, what is that equivalent to in 2023?
Question 10
10.
What was the cost of a 4 year college degree in 1990?
Question 11
11.
Click here to open the Inflation Calculator.
Using your answer from #10, what is that equivalent to in 2023?
Question 12
12.
Now look up what the actual cost of a 4 year college degree is in 2023.
Question 13
13.
Write a one-paragraph summary describing what you learned from this activity.
Go to an online search engine and search for “inflation winners and losers ”
Read articles (not paid advertisements) that describe how people are impacted by inflation.
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
Question 14
14.
What is one group that benefits from inflation?
Question 15
15.
Explain how your group in #14 benefits from inflation.
Question 16
16.
What is one group that is harmed by inflation?
Question 17
17.
Explain how your group in #16 is harmed by inflation.
1
1
1
1
1
1
1
1
1
1
Question 18
18.
Question 19
19.
Question 20
20.
Question 21
21.
Question 22
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Question 23
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Question 24
24.
Question 25
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Question 26
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Question 27
27.
To calculate the future cost of a product or service due to inflation, people need to know everything except the...
Inflation rate (e.g., 3%)
Current cost of product or service
Type of product or service
Future purchase date
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.
Interest-rate
Inflation
Market
Economic
Who is hurt most by inflation?
Homeowners with adjustable-rate mortgages
Homeowners with fixed-rate mortgages
People who own real estate
People who buy precious metals such as gold
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?
12 years
16 years
18 years
24 years
Deflation is generally not considered desirable because
It has historically been associated with severe economic downturns
People rush to buy things and increase their spending levels
The general level of prices in the economy increases
The general level of prices in the economy decreases
Everyone loses money when the U.S. inflation rate increases
True
False
The U.S. inflation rate is measured by the Consumer Price Index or CPI.
True
False
U.S. inflation rates have been in the double digits (i.e., 10% or higher) in the past.
True
False
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.
True
False
One of the causes of inflation is low demand for products and services.
