1. Make a list of products that now cost you more money.
DO NOW:
What are some products that you buy? Think back over the last few years, have the prices of those goods (and services) remained constant? Have they gone down? Have they gone up?
Make a list of products that now cost you more money.

2. What is Inflation?
Inflation is an increase in the general level of prices.
Inflation reduces the “purchasing power” of money
Examples:
It takes $2 to buy what $1 bought in 1982
It takes $6 to buy what $1 bought in 1961
When inflation occurs, each dollar of income will buy fewer goods than before.

3. What causes inflation? http://www.youtube.com/watch?v=WZ_OyroIQc0
As you watch this short clip, try to ID all possible causes of inflation.

4. Historic Inflation Rates

5. Annual Inflation Rate: Time for Prices to Double:
Country and Year:
Zimbabwe, 2008
Annual Inflation Rate:
79,600,000,000%
Time for Prices to Double:
24.7 hours

6. How does hyperinflation affect the economy?
When does inflation become a concern?

7. Inflation and College Costs Why is the cost of college so high
Inflation and College Costs Why is the cost of college so high? Why is it rising twice the rate of inflation?

9. Public two-year (in-state) Public four-year (in-state)
Private four-year
Tuition & fees
$3,131
$8,655
$29,056
Room, board, books, etc.
$12,453
$13,606
$14,233
Total cost
$15,584
$22,261
$43,289
Net price (after scholarships, grants, aid)
$4,350
$5,750
$15,680
The average cost of college:
Source: The College Board's Trends in College Pricing 2012 and Trends in Student Aid 2012 reports.

11. Turn ‘n Talk with your partner and then answer on a sheet of paper:
Why are the cost of college and the price of textbooks rising significantly faster than inflation?
Are the current inflated prices of college and college textbooks worth the enormous cost?
How would you reduce the cost of college and college textbooks? Propose at least 3 ways to reduce these costs.