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.


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Education Level: 9-12 College
Subjects: AP Economics Economics
Concepts: Federal Reserve System-functions Monetary Policy
Resource Types: Lesson
Languages: English
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