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.
Students will use the FRED database to download the Consumer Price Index (CPI) and calculate the equivalent price of a product from an earlier time to the relative price today. Students will discuss the limits of using a weighted index and changes in the quality of products when calculating the relative prices of goods from two time periods.
Deflationary conditions in the United States have not returned since the Great Depression. Instead, U.S. policymakers have frequently found it necessary to battle inflation over the past sixty years. While not a problem in America, concerns have been recently voiced about the economic effects of deflation in Japan. This EconomicsMinute examines (approximately one century after the publication of "The Wonderful Wizard of Oz") the extent to which the deflationary "wizard" can be expected to influence economic prosperity in Japan at the dawn of the twenty-first century.
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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.