IGCSE Economics-Revision-Effects of inflation and deflation on the economy
11
Curipod generated lesson: "Effects of inflation and deflation on the economy". #8-10
David Smith
Updated 5 months ago
1. Slide
60 seconds
Macroeconomics-Inflation
IGCSE Eonomics-Revision
2. Word cloud
120 seconds
what effects do you remember happen to the Economy when there is inflation?
3. Poll
60 seconds
What is inflation?
- A general increase in prices and fall in the purchasing value of money
- A decrease in prices and an increase in the purchasing value of money
- No effect on the economy
4. Slide
60 seconds
Inflation is a general increase in the price of goods and services over time. Deflation is a general decrease in the price of goods and services over time. These changes can affect the economy in terms of jobs, wages and even economic growth.
Inflation & Deflation: Impact on the Economy
5. Slide
60 seconds
Inflation: An increase in the general level of prices of goods and services in an economy over a period of time. Deflation: A decrease in the general level of prices of goods and services in an economy over a period of time. Stagflation: A combination of high unemployment and high inflation, which can cause a decrease in economic growth.
Concepts:
6. Slide
60 seconds
Deflation can actually have a positive effect on an economy. It can encourage people to save their money instead of spending it, which is beneficial for the economy in the long run. Inflation can actually help boost economic growth. This is because people are encouraged to spend money sooner rather than later, which helps fuel economic growth. Inflation and deflation can be caused by a variety of factors, such as changes in supply and demand, changes in interest rates, or changes in the value of a currency.
Did you know?
7. Drawings
450 seconds
Draw a tree that grows pizza instead of leaves.
8. Open question
180 seconds
How does monetary policy affect inflation and deflation?
9. Open question
180 seconds
Work together in pairs: What are some of the main effects of inflation and deflation on the economy?
10. Slide
60 seconds
Inflation can often be caused by an increase in the money supply in an economy. Inflation is sometimes referred to as a 'hidden tax' because it erodes the purchasing power of money over time. Inflation has been around since ancient times, with the Roman Empire suffering from it due to its over-issuance of coins.
Did you know?
11. Poll
60 seconds
What are some effects of inflation on the economy?
- Decrease in purchasing power, decreased savings, increased borrowing costs
- Increased purchasing power, increased savings, decreased borrowing costs
- No effect on the economy
12. Poll
60 seconds
What is deflation?
- A decrease in general price levels and an increase in the value of money
- An increase in general price levels and a decrease in the value of money
- No effect on the economy
13. Poll
60 seconds
What are some effects of deflation on the economy?
- Decrease in demand for goods & services, reduction of wages & employment opportunities
- Increase demand for goods & services ,increase wages & employment opportunities
- No effect on demand for goods & services or wages
14. Slide
60 seconds
Deflation is a decrease in the general price level of goods and services. In the USA, deflation has been caused by a decrease in consumer demand, lower oil prices, and the Federal Reserve’s policies. Deflation can cause economic hardship, as it discourages spending and investment.
Deflation in the USA
15. Poll
60 seconds
How can governments counteract high inflation rates?
- Raising interest rates to reduce spending
- Lowering interest rates to encourage spending
- Printing more money
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