What is Inflation?
What happens to prices during inflation?
Prices go up.
They went up each round.
What decade did it happen in?
The 1920s.
What did the video show happening to prices during Germany's hyperinflation?
Prices rose so quickly that people had to spend money right away before it lost value.
Name one thing today that costs more than 5 years ago.
(Any Answer) Exp: Cocacola, Subway Fares, Housing Prices, etc.
What happens to money's value when inflation happens?
It buys less.
What happened to how much your money could buy?
You could buy less even with more marks.
What caused Germany's inflation to get worse?
The government kept printing money to pay debts.
What did people carry money in?
Wheelbarrows or baskets.
Who tries to keep inflation low in the US?
The Government.
True or False: Inflation means goods get cheaper.
False, goods get more expensive.
What did the last round show about hyperinflation?
Prices changed so fast that money became almost useless.
What happened to peoples savings during hyperinflation?
Savings became worthless, prices went up faster than people could keep up with.
Why did people burn money?
It was cheaper than buying wood.
Gasoline.
If your allowance stays the same but prices rise, what happens to what you can buy?
You can buy less with the same money.
If you owned a store in the game, how did your price increase protect you from losing money?
Because you raised the prices quickly or traded goods instead of cash.
How did hyperinflation affect the way people felt about their government and economy?
People lost trust in the government and became angry and scared.
What was one effect of printing too much money?
Prices rose uncontrollably and money lost value fast.
Why is slow, steady inflation sometimes good for the economy?
It encourages people to spend and invest instead of hogging money.
Why can't government just print more money to make everyone rich?
Because when there's too much money, prices rise and money loses value.
How was the game like real life in Germany during the 1920's?
In both, prices exploded and people's money lost value quickly.
What's the value of 1 US dollar in Marks during the 1920's?
4.2 Billion Marks.
What lesson did the video teach about controlling inflation?
Governments must limit how much money they print to keep prices stable.
What does demand have to do with pricing, and how does it affect inflation?
Demand for an item leads to higher pricing, making inflation rates go up.