The Basics of Inflation

• English
• Secundair onderwijs

The Basics of Inflation

Learning Objective

At the end of the lesson, you should be able to define inflation and its causes.

Introduce the learning objective and explain why it is important to understand inflation.

What do you already know about inflation?

Defining Inflation

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.

Introduce the definition of inflation and explain that it is a complex economic concept.

Causes of Inflation

There are two main causes of inflation: demand-pull inflation and cost-push inflation.

Explain the two main causes of inflation and provide examples of each.

Demand-Pull Inflation

Demand-pull inflation occurs when there is too much money chasing too few goods.

Explain demand-pull inflation and provide an example.

Cost-Push Inflation

Cost-push inflation occurs when the cost of production increases and businesses raise prices to maintain their profit margins.

Explain cost-push inflation and provide an example.

Effects of Inflation

Inflation can have several negative effects on an economy, including decreased purchasing power, reduced investment, and increased uncertainty.

Explain the negative effects of inflation on an economy and provide examples.

Controlling Inflation

Governments and central banks can use monetary and fiscal policy tools to control inflation.

Explain how governments and central banks can control inflation and provide examples of policy tools.

Conclusion

Inflation is a complex economic concept that can have significant effects on an economy. Understanding its causes and effects is important for making informed economic decisions.

Summarize the key points of the lesson and encourage students to ask questions or seek clarification.

Conclusion

Inflation is a complex economic concept that can have significant effects on an economy. Understanding its causes and effects is important for making informed economic decisions.

Summarize the key points of the lesson and encourage students to ask questions or seek clarification.

What do you know about inflation in Belgium at this moment ?

Write down 3 things you learned in this lesson.

Have students enter three things they learned in this lesson. With this they can indicate their own learning efficiency of this lesson.

Write down 2 things you want to know more about.

Here, students enter two things they would like to know more about. This not only increases involvement, but also gives them more ownership.

Ask 1 question about something you haven't quite understood yet.

The students indicate here (in question form) with which part of the material they still have difficulty. For the teacher, this not only provides insight into the extent to which the students understand/master the material, but also a good starting point for the next lesson.