Create a Word document to use for your answers. Both you and your partner should have their own document. Save the document as: Inflation your name. (Hint: Be sure to save often!!!)
In your groups of two, you will determine a working definition of inflation and deciding whether each instance listed below is an example of inflation. Using the sites listed below, write YOUR OWN definition of inflation. Group member one should use site on and group member two should use site two.
Site 1 - www.investopedia.com/university/inflation/inflation1.asp
Site 2 - http://economics.about.com/od/helpforeconomicsstudents/f/inflation.htm
Now, using this definition, decide if these topics are examples of inflation. In your document, list the topic and yes or no. If your answer is no, explain why.
1. The price of eggs goes up R20 at Easter.
2. What used to cost you R50 at the grocery store now costs R56.
3. Gas goes up R.34 during the summer traveling months.
4. We are at war with Iran. You cannot buy as much as you used to at Hibbetts.
5. Minimum wage does not go up for 2 years.
Using the websites provided, list the years where inflation seems to have been the most drastic in our country. What was happening during our country's history during this time that cause inflation to be steep. List the years and a 4-5 sentence description of what was taking place. Again, group member one use the first site and group member two use the second.
Site 1 - http://inflationdata.com/
Site 2 - http://www.usinflationcalculator.com/inflation/historical-inflation-rates/
Now you must find out what factors affect inflation. Using the site listed below, list and describe what factors affect inflation. You must list at least 5 factors. Group member one should list the factor and group member two should use a search engine (ex. www.google.com) to determine why these factors affect inflation. Once all factors have been determined and their reason listed, be sure both partners have this on their Word document.
Inflation factors site: http://www.futurecasts.com/Understanding%20Inflation.html
Each group member should think individually about what they can do to help keep inflation down These causes can be something you can do as an individual, what our country can do, or what the world as whole can do to help keep prices down. Each of you should have at least three and no more than five reasons. Type these reasons in your Word document along with a two sentence description of each as to why this would help keep inflation down.
Now you and your partner must create a poster which displays your findings and what your suggestions are to help keep inflation down. What is required on the poster and each partner's duties are listed below.
Group member one:
1 - Display a working defintion of "Inflation" which your group generated.
2 - Display a graph which shows the years of high inflation which you discovered in step 3. You may use excel to create this graph.
3 - List 3 of the reasons inflation occurs.
Group member 2:
1 - Label on the graph your partner created what happened during the years of high inflation to cause such economic turns.
2 - List 3 of the reasons inflation occurs.
3 - List 3 things which can be done to help keep inflation down.
Now you and your partner should return to your workstations to complete the "critical thinking" portion of the assignment. In a one page, MLA formatted paper address the following questions:
1 - What is inflation and what causes it?
2 - What is the biggest reason that you think inflation has occurred in our country's history?
3 - What is the best thing which can be done to keep inflation down?
4 - Based on what you have researched, do you see our country heading towards a period of high inflation? Why or why not?
5 - What was your role in this assignment?
** Print out both your Word document you created in the beginning (Inflation_yourname) and your critical thinking essay. Staple and turn them in.