1. At the top of your paper, list as many things that this could be
At the top of your paper, list as many things that this could be. Feel free to use your creativity! 

2. Quick Review What is inflation? Why is inflation a problem?
An increase in prices
Why is inflation a problem?
It reduces the value of your money.

3. Who is hurt by inflation?
Inflation hurts people who have saved money and people who only have a set amount of money

4. Who is helped by inflation?
Inflation helps people who have borrowed money. It can help those who own resources that increase in value (e.g., homes, land).

5. Deflation The opposite of inflation Definition: A decrease in prices
Decreases the value of resources that can change in value, such as homes.

6. Why is deflation really, really bad?
Deflation and unemployment go hand in hand.

7. Why is deflation really, really bad?
Consumers, worried about the future, reduce spending, causing more unemployment. The process can become a downward spiral.

8. What do we call deflation and unemployment together?
A recession!

9. Draw this in the blank space.
But what is it?

10. The Business Cycle!

11. The Business Cycle
Alternating periods of expansion (growth) and contraction (slowdown/recession) in the economy.

12. The Business Cycle
Looks like a roller coaster, but going up over time (blue line)

13. Business Cycle
A. Expansion (growth and good times!) B. Peak (the best!) C. Contractionary Period (unemployment grows, growth slowing) D. Trough (the worst!)

14. One last look at inflation and the dangers of too much of it!

15. Collapse of the USSR and its member states/allies led to hyperinflation!

16. Hyperinflation 100% means prices double!
We try to keep U.S. inflation low (5% or lower)