General Information

Title: Inflation

Subject Area: Social Studies/Economics

SOL 7.7 - Virginia Standards of Learning

The students will describe the role of the governments in the United States economy, with emphasis on:

• provision of public goods and services;
• protection of consumer rights, contracts, and property rights;
• the impact of government taxation, borrowing, and spending on individuals and on the production and distribution of goods and services; and
• the role of the Federal Reserve System and the impact of monetary policy on the money supply and interest rates.

Grade Level: 8

Lesson Topic: The Affects of Inflation

Descriptive Overview: Although inflation seems to be an ambiguous economic term, it hits very close to home. Inflation causes higher prices for the consumer and affects all aspects of life- even shopping for necessities. Students will see how inflation has and will continue to change prices in our everyday life.

Advantages of Medium: Students receive and interactive experience that allows for prior knowledge as well as the use of predictions. Students also receive immediate feedback through computer-generated games!

Lesson Specifics

Lesson Objectives/Goals: The student will:

• identify how inflation affects the cost of living.
• calculate the percent of change in prices.

Assumed Skills or Prerequisite Skills: Students must know the meaning of the term inflation. Also, students should be able to make basic calculations of percentages

Learning Environment: Computer lab

Instructional Set

Webster's Dictionary defines the cost of living as " the average cost of the necessities of life, as food, clothing, and shelter." The cost of living can vary from county to county, state to state, as well as country to country. These changes in prices are a result of inflation.

• Visit the Then and Now: Prices, 1930s Great Depression Gallery
• Use advertisements, catalogs, or shop on-line to find today's prices for three items at the gallery! (Try The Gap)

Gaining Attention: Not applicable

Orienting the Lesson: Not applicable

Stimulating Recall of Prerequisites: Not applicable

Key Questions: Not applicable

Teaching Strategies

1. Play the "Then and Now" Game by deciding the correct price for each year given.
2. After completing the "Then and Now" Game, have students calculate the percent of change in prices of each item to complete the chart.
3. Once each calculation has been made, students may check their answers immediately by pressing the "ENTER" key.

Terminology/Vocabulary:

Inflation
Cost of Living

Practice: Not applicable

Assessment: Complete "Deb's Deli" activity by identifying the menu items that changed in price due to inflation.

Enhancements

• Pretend that you are relocating to another state and would like to know what adjustments need to be made in your budget. Find cost of living statistics for your state here and plan your trip.
• Research the Consumer Price Index for your area and discover the percent of change in prices for everyday expenditures such as food, apparel, and medical care by visiting here.
• Use grocery store ads from newspapers or visit www.netgrocer.com to compare more current prices of food items.

Extensions

Not applicable