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The Economic Goal of Price Stability

Price stability is an important economic goal. In this lesson, students participate in a mock-quiz exercise to experience effects similar to those that consumers experience when dealing with unstable prices. They analyze the impact that unexpected inflation and changes in purchasing power have on savers, borrowers, lenders, and those living on fixed incomes. Students evaluate how price stability can ease decisionmaking and help the economy grow.

•  Lesson (pdf)

•  PowerPoint slides (pptx)

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Audience:   High School, College
Language:   English
Subjects:   AP Economics, Economics
Resource Types:   Lessons
Concepts:   Federal Reserve System-functions, Monetary Policy