Governments and other financial organizations are constantly measuring trends in the economy to try to predict what will happen next. The ability to successfully economic trends has a profound effect on whether or not a business will make a profit or lose money. The economy also affects people's personal lives by helping them make good decisions: Is this a good time to buy a car? Refinance your home? Take a new job? One of the measurements used to evaluate and predict the economy is the CPI, or Consumer Price Index.
Students examine the reasoning behind and the implications of the change in the CPI calculation. The government computes indexes of the prices of a collection or market basket of goods and services. It measures the prices of a fixed market basket of some 300 consumer goods and services purchased by a typical urban consumer. Critics have charged that the CPI tends to overstate inflation.
This lesson focuses on the Consumer Price Index (CPI) and rate of inflation reported March 15, 2013, by the U.S. Bureau of Labor Statistics (BLS) for the month of February, 2013. Students will read the BLS report, analyze the meaning of the CPI data, determine the change in consumer prices, and explore the impact of the change in the price level on themselves, their families, consumers, and producers.
The following lessons come from the Council for Economic Education's library of publications. Clicking the publication title or image will take you to the Council for Economic Education Store for more detailed information.
Teaching Financial Crises is an eight lesson resource that provides an organizing framework in which to contextualize all of the media attention that has been paid to the recent financial crisis, as well as put it in a historical context. The current events stories, opinion pieces, and other popular media pieces that are today in great supply have generally not connected to educational objectives, historical analysis, and economic processes and concepts that are used in the high school classroom. In Teaching Financial Crises, teachers will find a non-partisan and non-ideological resource to help them simplify and offer balanced perspectives on this challenging subject matter.
3 out of 9 lessons from this publication relate to this EconEdLink lesson.
Focus: Understanding Economics in U.S. History uses a unique mystery-solving approach to teach U.S. economic history to your high school students.
3 out of 40 lessons from this publication relate to this EconEdLink lesson.
This publication contains 20 lessons designed to provide an economic insight into topics typically covered in may civics and government classes.
2 out of 21 lessons from this publication relate to this EconEdLink lesson.