AP ECONOMICS: September 27

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Presentation transcript:

AP ECONOMICS: September 27 Warm-up: Does the relationship between Real GDP and inflation tend to be direct or inverse? Explain. Learning Target: In order to understand how to measure and evaluate economic performance, I will analyze the nuances of the inflation rate. I will know I have it when I can: (1) define inflation, nominal inflation, and real inflation; (2) calculate the inflation rate; (3) identify those that are hurt and benefit from inflation; and (4) explain why Fed policymakers target inflation at 2%. --definition; real vs. nominal; inflation calculation; hurt or benefit from inflation?; COLAs and ARMs; the Fed target 2% rate of inflation Closure: Begin Worksheet 14.3 (HO) Assignment: --conclude Worksheet 14.3 --read Modules 15 and 11