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I Would Gladly Pay You Today for a Pizza Tomorrow!
A Discussion Regarding Inflation

Life Questions

Take a moment and consider each of the following pairs.

Receive $1,000 today or…
receive $1,000 ten years from now?
Pay for a pizza party today and have it 50 years from now (for your retirement celebration) or…
have a pizza party 50 years from now and pay for it 50 years from now?

In this section, we're going to learn about inflation. By the end of the lesson, you'll see if, based on what you learn about inflation, your answer to our life questions remain the same. Would you rather have money today or tomorrow? Do you want to buy pizza now and eat it later or just pay for it later, when you eat it?

After completing this section of the course, you should be able to:

  • recognize the definition of inflation
  • discuss why people have a time preference for money