ECO 100 WEEK 7 DISCUSSION
“Using the Rate of Inflation to Make a Decision”
In Chapter 4 of The Little Book of Economics, Ip talks about the natural rate of unemployment as the rate of unemployment that will not lead to an acceleration in inflation. Keep this reading in mind as you respond to this week’s discussion questions.
• Think about this: If the current unemployment rate is 3.9%, would one expect the rate of inflation to increase or decrease? Explain your answer.
• Now you face a wonderful decision. Imagine that you just won a lottery jackpot of $100,000. If you expect inflation to accelerate, should you buy that home you’ve been thinking of now? What would you decide if the rate of inflation is negative?
Reply to a peer and share your opinion about their decision.
Do use these fascinating videos as a perspective:
Hyperinflation in Germany 1923 https://www.youtube.com/watch?v=WI1i5yhwOz8
Zimbabwe Hyperinflation in current modern era
WOW!!!!! look at this video!! https://www.youtube.com/watch?v=MPKGZreusoQ
https://www.youtube.com/watch?v=uGELzZRzRaw and https://www.youtube.com/watch?v=78-BlZXm7wA
Why governments inflate– https://www.youtube.com/watch?v=E6A_WpUY2LI
NOTE: THREE DIFFERENT ANSWER POSTED CHOOSE ANYONE
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