Lesson 2 - Inflation | Pygg E. Bank Economic$

Kaltura

Consumer buying is at an all time high. Today’s forecast is EXPENSIVE. Zyler Z. and Kayla K. Compare the prices of a candy bar and a telephone call today with previous years. Inflation and its causes are defined. The idea of
purchasing power is introduced through the suggestion of starting a savings account to earn interest. Another focus point addresses what happens when prices and unemployment go up causing stagflation. The lesson concludes with advising students to save money in order to have purchasing power.

Vocabulary:


Consumer – one who acquires goods or services.
Deflation – when the price level goes down.
Economic – pertaining to the production, development, and management of material wealth.
Expensive – costly.
Inflation – an increase in prices on most products and services.
Interest – payment for the use of money.
Investment – money set aside for future income, benefit, or profit to meet longer-term goals.
Purchasing Power – saving money and earning interest in order to purchase an item or service.
Savings – money set aside for short-term goals.
Stagflation – term used when prices go up and unemployment goes up at the same time.