1. For your pods: first person here record the names of the people in your pod and the chromebook numbers yall have

2. Agenda Unemployment review: warmup Inflation investigation Notes on Inflation Inflation worksheet Objectives- Students will be able to… Distinguish between different types of unemployment Define the three types of inflation Identify costs and benefits of inflation

3. Which of the four types of unemployment suggest that the economy is unhealthy? Which of the four suggest that the economy is healthy? Explain.

4. Predict what a graph of the unemployment rate in the US looks like from 1948-2014

5. Inflation What is this cartoon saying about food prices?

6. Inflation is… A persistent increase in the general price level in the economy As you saw in your warm up activity, the value of money changes over time

7. CPI Consumer Price Index- a cost of living index. Measures the average change in price of a type of good over time

8. Three types of inflation Creeping inflation- gradual inflation that happens every year. Since 1914, annual rate of inflation is about 3.4% Hyperinflation- inflation goes into overdrive. Prices skyrocket and people lose faith in the economy Deflation- when the inflation rate is negative. Money become more valuable – Good for savers, as the value of every dollar they save goes up

9. Hyper inflation

10. Wage Price Spiral

13. Real GDP Adjusted for price changes (inflation) More accurate reflection of the economic expansion or contraction Per Capita GDP Calculates standard of living by dividing REAL GDP by the number of people living in a country. Nominal GDP Not adjusted for price changes (inflation) Preliminary number released every 3 months (quarter) It is then recalculated using price changes. GDP pg. 4 of PKT