Inflation Basics
A general increase in prices over time
What is inflation?
They go up during inflation.
What are prices?
The amount of money needed to live in an area.
What is cost of living?
Money earned from working.
What are wages?
Groceries cost more money.
What happens during inflation?
It decreases when inflation rises.
What is purchasing power ?
An example includes milk, gas, or bread.
What is an everyday good?
Examples include rent, food, or transportation.
What is a basic expense?
The lowest legal pay for workers.
What is minimum wage?
Rent usually increases.
What happens to housing costs?
A general decrease in prices.
What is deflation?
Changes in supply, demand, or global issues cause this.
What is why gas prices rise?
Higher demand and more opportunities make them expensive.
What are big cities?
A fixed yearly income.
What is a salary?
Low-income individuals are most affected.
Who is hurt most by inflation?
Extremely fast, out-of-control inflation.
What is hyperinflation?
The relationship between how much people want something and how much is available.
What is supply and demand?
A plan for how to spend and save money.
What is a budget?
An increase in pay.
What is a raise?
Spending less or budgeting helps with this.
What is saving money during inflation?
The U.S. agency that tracks inflation data.
What is the Bureau of Labor Statistics (BLS)?
Prices increase when this is higher than supply.
What is demand?
People struggle financially if this happens.
What is wages not keeping up with inflation?
Workers want this because prices are rising.
What is higher pay (or wage increase)?
It loses value over time.
What happens to savings during inflation?