SlideShare una empresa de Scribd logo
1 de 9
Descargar para leer sin conexión
DO NOW
Provide an example for each type
 of unemployment we learned
 about yesterday. (structural,
 cyclical, frictional, and seasonal)
AGENDA
1. DO NOW
2. Review
3. Inflation Notes
4. Frontline: 10 Trillion and Counting
COMPETENCIES/OBJE
     CTIVES
SWBAT describe the types of
 inflation, and identify two sources
 of inflation.
SWBAT Identify the problems
 that unexpected inflation creates.
Inflation
 Inflation- an increase in the economy’s price level.

 Inflation reduces the value of money

 Measured on an annual basis

 Inflation rate- percentage increase in the price level from
  one year to the next.
Types of Inflation
 Hyperinflation- extremely
  high inflation.

 Disinflation- a reduction in
  the rate of inflation
 Deflation- a decrease in
  price level.
Two Sources of Inflation
 Inflation is an increase in the economy’s price level
  resulting from an increase in aggregate demand or a
  decrease in aggregate supply.

 Demand-pull inflation- inflation resulting from a
  rightward shift of the aggregate demand curve; greater
  demand pulls up the price level.

 Cost- push inflation- inflation resulting from a leftward
  shift of the aggregate supply curve; reduced supply
  pushes up the price level.
Impact of Inflation
 Since 1946 the the CPI (Consumer Price Index) has
  increased elevenfold.

 It now takes $11.80 dollars to purchase what $1
  purchased in 1946.

 On average the CPI has increased 3.8% per year.
Think
 If your boss offers you a raise that will make your salary
  about 4% more than it was before however inflation
  unexpectedly goes up by 5% will you be making more or
  less money than you did before?
Inflation and Interest
               Rates
 Real interest rate= nominal interest rate- inflation rate
 Nominal interest rate- the interest rate expressed in current
  dollars as a percentage of the amount loaned; the interest rate
  on the loan agreement.
 Real interest rate- the interest rate expressed in dollars of
  constant purchasing power as a percentage of the amount
  loaned; the nominal interest rate minus the inflation rate.
 Lenders must predict how much inflation will impact the
  amount of money they will receive in terms of purchasing
  power.

Más contenido relacionado

La actualidad más candente

Case study on inflation, price and supply
Case study on inflation, price and supplyCase study on inflation, price and supply
Case study on inflation, price and supplyPratigya Gautam
 
Macro Economics: Phillips Curve, Inflation and Interest Rate
Macro Economics: Phillips Curve, Inflation and Interest RateMacro Economics: Phillips Curve, Inflation and Interest Rate
Macro Economics: Phillips Curve, Inflation and Interest RateZeeshan Ali
 
12680 l.n. ppt. types of inflation
12680 l.n. ppt. types of inflation12680 l.n. ppt. types of inflation
12680 l.n. ppt. types of inflation9627882383
 
Inflation & Types of Inflation
Inflation & Types of InflationInflation & Types of Inflation
Inflation & Types of InflationMuneeb Ahmed
 
Impact of inflation on Equity market.
Impact of inflation on Equity market. Impact of inflation on Equity market.
Impact of inflation on Equity market. Akash Kumar Saha
 
Inflation ppt
Inflation ppt Inflation ppt
Inflation ppt Suaj
 
Economics Inflation
Economics InflationEconomics Inflation
Economics Inflationstecikeke
 
Inflation causes and its measures
Inflation causes and its measuresInflation causes and its measures
Inflation causes and its measuresSoniya Balan
 
Presentation Inflation
Presentation InflationPresentation Inflation
Presentation InflationPrabhat Ranjan
 
Presentation of inflation and Rwandan economy
Presentation of inflation and Rwandan economyPresentation of inflation and Rwandan economy
Presentation of inflation and Rwandan economyDr. Shweta Uppadhyay
 
Inflation & unemployment
Inflation & unemploymentInflation & unemployment
Inflation & unemploymentKinnar Majithia
 

La actualidad más candente (18)

Inflation and the Phillips Curve
Inflation and the Phillips CurveInflation and the Phillips Curve
Inflation and the Phillips Curve
 
Case study on inflation, price and supply
Case study on inflation, price and supplyCase study on inflation, price and supply
Case study on inflation, price and supply
 
Inflation
InflationInflation
Inflation
 
Macro Economics: Phillips Curve, Inflation and Interest Rate
Macro Economics: Phillips Curve, Inflation and Interest RateMacro Economics: Phillips Curve, Inflation and Interest Rate
Macro Economics: Phillips Curve, Inflation and Interest Rate
 
12680 l.n. ppt. types of inflation
12680 l.n. ppt. types of inflation12680 l.n. ppt. types of inflation
12680 l.n. ppt. types of inflation
 
Inflation & Types of Inflation
Inflation & Types of InflationInflation & Types of Inflation
Inflation & Types of Inflation
 
inflation
inflationinflation
inflation
 
Impact of inflation on Equity market.
Impact of inflation on Equity market. Impact of inflation on Equity market.
Impact of inflation on Equity market.
 
Inflation
InflationInflation
Inflation
 
Inflation
InflationInflation
Inflation
 
Inflation ppt
Inflation ppt Inflation ppt
Inflation ppt
 
Economics Inflation
Economics InflationEconomics Inflation
Economics Inflation
 
Inflation
InflationInflation
Inflation
 
Inflation causes and its measures
Inflation causes and its measuresInflation causes and its measures
Inflation causes and its measures
 
Presentation Inflation
Presentation InflationPresentation Inflation
Presentation Inflation
 
Presentation of inflation and Rwandan economy
Presentation of inflation and Rwandan economyPresentation of inflation and Rwandan economy
Presentation of inflation and Rwandan economy
 
Inflation & unemployment
Inflation & unemploymentInflation & unemployment
Inflation & unemployment
 
INFLATION
INFLATIONINFLATION
INFLATION
 

Destacado

Destacado (7)

Day 36
Day 36Day 36
Day 36
 
Day 34
Day 34Day 34
Day 34
 
Day 36
Day 36Day 36
Day 36
 
Day 36
Day 36Day 36
Day 36
 
What is opportunity cost
What is opportunity costWhat is opportunity cost
What is opportunity cost
 
Economies Of Scale
Economies Of ScaleEconomies Of Scale
Economies Of Scale
 
Time value of money
Time value of moneyTime value of money
Time value of money
 

Similar a Day 35

Monetary policy & inflation@ ppt
Monetary policy & inflation@ pptMonetary policy & inflation@ ppt
Monetary policy & inflation@ pptBabasab Patil
 
3532391 inflation
3532391 inflation3532391 inflation
3532391 inflationsealfonso
 
monetary and its eloborateds policy.pptx
monetary and its eloborateds policy.pptxmonetary and its eloborateds policy.pptx
monetary and its eloborateds policy.pptxrajesshs31r
 
Monetary policy & inflation@ ppt doms
Monetary policy & inflation@ ppt doms Monetary policy & inflation@ ppt doms
Monetary policy & inflation@ ppt doms Babasab Patil
 
Inflation effects on economy.
Inflation effects on economy.Inflation effects on economy.
Inflation effects on economy.Rishi vyas
 
INFLATION & ITS EFFECTS
INFLATION & ITS EFFECTSINFLATION & ITS EFFECTS
INFLATION & ITS EFFECTSRishi vyas
 
Inflation by Rojan Mehta
Inflation by Rojan MehtaInflation by Rojan Mehta
Inflation by Rojan MehtaRojan Mehta
 
Interest Rates And Inflation Seminar Full
Interest Rates And Inflation Seminar FullInterest Rates And Inflation Seminar Full
Interest Rates And Inflation Seminar Fulldfdai
 
Inflation | Types and causes of inflation
Inflation | Types and causes of inflationInflation | Types and causes of inflation
Inflation | Types and causes of inflationloveltreasures121
 
Using cartoons to teach about inflation
Using cartoons to teach about inflationUsing cartoons to teach about inflation
Using cartoons to teach about inflationMike Fladlien
 

Similar a Day 35 (20)

Inflation
InflationInflation
Inflation
 
Monetary policy & inflation@ ppt
Monetary policy & inflation@ pptMonetary policy & inflation@ ppt
Monetary policy & inflation@ ppt
 
Inflation
InflationInflation
Inflation
 
inflation
inflationinflation
inflation
 
3532391 inflation
3532391 inflation3532391 inflation
3532391 inflation
 
Inflation
Inflation Inflation
Inflation
 
monetary and its eloborateds policy.pptx
monetary and its eloborateds policy.pptxmonetary and its eloborateds policy.pptx
monetary and its eloborateds policy.pptx
 
Inflation
InflationInflation
Inflation
 
Monetary policy & inflation@ ppt doms
Monetary policy & inflation@ ppt doms Monetary policy & inflation@ ppt doms
Monetary policy & inflation@ ppt doms
 
Inflation effects on economy.
Inflation effects on economy.Inflation effects on economy.
Inflation effects on economy.
 
INFLATION & ITS EFFECTS
INFLATION & ITS EFFECTSINFLATION & ITS EFFECTS
INFLATION & ITS EFFECTS
 
Inflation by Rojan Mehta
Inflation by Rojan MehtaInflation by Rojan Mehta
Inflation by Rojan Mehta
 
Interest Rates And Inflation Seminar Full
Interest Rates And Inflation Seminar FullInterest Rates And Inflation Seminar Full
Interest Rates And Inflation Seminar Full
 
Causes
CausesCauses
Causes
 
inflation 1.1.pptx
inflation 1.1.pptxinflation 1.1.pptx
inflation 1.1.pptx
 
Inflation
InflationInflation
Inflation
 
Mukesh Kumar
Mukesh KumarMukesh Kumar
Mukesh Kumar
 
inflation
inflationinflation
inflation
 
Inflation | Types and causes of inflation
Inflation | Types and causes of inflationInflation | Types and causes of inflation
Inflation | Types and causes of inflation
 
Using cartoons to teach about inflation
Using cartoons to teach about inflationUsing cartoons to teach about inflation
Using cartoons to teach about inflation
 

Más de MsAquilini

Más de MsAquilini (20)

Day 34
Day 34Day 34
Day 34
 
Day 34
Day 34Day 34
Day 34
 
Unit 4 day one
Unit 4 day oneUnit 4 day one
Unit 4 day one
 
Le febvre aqulini shark tank
Le febvre   aqulini shark tankLe febvre   aqulini shark tank
Le febvre aqulini shark tank
 
Business project
Business projectBusiness project
Business project
 
Day 23
Day 23Day 23
Day 23
 
Day 8 ccp
Day 8  ccpDay 8  ccp
Day 8 ccp
 
Day 8 acc
Day 8  accDay 8  acc
Day 8 acc
 
Comic rubric
Comic rubricComic rubric
Comic rubric
 
Supply and demand pp
Supply and demand ppSupply and demand pp
Supply and demand pp
 
Production possibilites frontier
Production possibilites frontierProduction possibilites frontier
Production possibilites frontier
 
Day 4
Day 4Day 4
Day 4
 
Factors of production
Factors of productionFactors of production
Factors of production
 
Day 3
Day 3Day 3
Day 3
 
Day 3
Day 3Day 3
Day 3
 
Binder checks
Binder checksBinder checks
Binder checks
 
Binder check
Binder checkBinder check
Binder check
 
Binder check
Binder checkBinder check
Binder check
 
Day 32
Day 32Day 32
Day 32
 
Day 34 lp
Day 34 lpDay 34 lp
Day 34 lp
 

Day 35

  • 1. DO NOW Provide an example for each type of unemployment we learned about yesterday. (structural, cyclical, frictional, and seasonal)
  • 2. AGENDA 1. DO NOW 2. Review 3. Inflation Notes 4. Frontline: 10 Trillion and Counting
  • 3. COMPETENCIES/OBJE CTIVES SWBAT describe the types of inflation, and identify two sources of inflation. SWBAT Identify the problems that unexpected inflation creates.
  • 4. Inflation  Inflation- an increase in the economy’s price level.  Inflation reduces the value of money  Measured on an annual basis  Inflation rate- percentage increase in the price level from one year to the next.
  • 5. Types of Inflation  Hyperinflation- extremely high inflation.  Disinflation- a reduction in the rate of inflation  Deflation- a decrease in price level.
  • 6. Two Sources of Inflation  Inflation is an increase in the economy’s price level resulting from an increase in aggregate demand or a decrease in aggregate supply.  Demand-pull inflation- inflation resulting from a rightward shift of the aggregate demand curve; greater demand pulls up the price level.  Cost- push inflation- inflation resulting from a leftward shift of the aggregate supply curve; reduced supply pushes up the price level.
  • 7. Impact of Inflation  Since 1946 the the CPI (Consumer Price Index) has increased elevenfold.  It now takes $11.80 dollars to purchase what $1 purchased in 1946.  On average the CPI has increased 3.8% per year.
  • 8. Think  If your boss offers you a raise that will make your salary about 4% more than it was before however inflation unexpectedly goes up by 5% will you be making more or less money than you did before?
  • 9. Inflation and Interest Rates  Real interest rate= nominal interest rate- inflation rate  Nominal interest rate- the interest rate expressed in current dollars as a percentage of the amount loaned; the interest rate on the loan agreement.  Real interest rate- the interest rate expressed in dollars of constant purchasing power as a percentage of the amount loaned; the nominal interest rate minus the inflation rate.  Lenders must predict how much inflation will impact the amount of money they will receive in terms of purchasing power.