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Define and distinguish between inflation and deflation
Describe how a CPI is used to measure and monitor inflation and deflation Explain and distinguish between demand-side and supply-side causes of inflation Analyse the consequences of inflation and deflation for consumers, workers, savers lenders, firms and the economy as a whole Discuss the range of policies available to a government to control inflation and deflation and analyse how effective they might be |
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INFLATION INTRODUCTION:
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HAND OUT REQUIRED FOR NOTE TAKING:
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| inflation_lessons_1_2_and_3_igcse.docx |
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activity TWO: mEASURING INFLATION |
- Distinguish between inflation, disinflation and deflation.
- Explain how inflation and deflation are typically measured by calculating a consumer price index (CPI).
- Explain how different income earners may experience a different rate of inflation when their pattern of consumption is not accurately reflected by the CPI.
- Explain how inflation figures may not accurately reflect changes in consumption patterns and the quality of the products purchased.
- Explain how economists measure a core/underlying rate of inflation.
- Explain how a producer price index measuring changes in the prices of factors of production may be useful in predicting future inflation.
- HL Only Construct a weighted price index, using a set of data.
- HL Only Calculate the inflation rate from a set of data.
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ACTIVITY THREE: consequences of inflATION |
- Discuss the possible consequences of a high inflation rate.
- Discuss the possible consequences of deflation.
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ACTIVITY : Causes of inflation |
- Explain demand-pull inflation.
- Explain cost-push inflation.
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GOVERNMENT POLICIES TO DEAL WITH INFLATION
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- Evaluate government policies to deal with the different types of inflation.
| the_inflation_game_-_roles.pptx |
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ASSESSMENT: Complete the crossword
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| scan_oct_20_2020.pdf |
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Complete the Kognity review of inflation.
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