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A Discussion Regarding Inflation

Knowledge Check

After playing with the inflation calculator, what is clear to you about inflation? Which of the following would you say are true statements? Which are false?

True or False: Inflation is a general, sustained rise in the average price level.

True or False: I can buy less with $1.00 today than I will be able to next year.

True or False: I will likely need a raise each year in order to buy the same amount of "stuff" each year.

True or False: My grandparents paid more for things than my grandchildren will.

True or False: Having a dollar today gives me more buying power than having a dollar 10 years ago.