Keeping It Real: Teach ACRL Information Literacy Frames with FRED Data

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In this activity, students first learn about the concepts of nominal and real values and inflation. Then they learn about basic strategies for establishing the reliability of a data source. Students work in FRED® and use the formula real = (nominal/CPI)*100 to plot inflation-adjusted minimum wage rates for two states and compare the results. Students then discuss the new information created as a result of their work.

Objectives

Students will be able to

  • create new FRED® graphs;
  • define minimum wage, nominal and real wages, and consumer price index (CPI);
  • identify metadata in a FRED® graph;
  • identify additional questions for further research;
  • describe the difference between data sources and aggregators;
  • describe the difference between nominal and real wages; and
  • understand the issues of authority regarding trustworthiness, reliability, and credibility of data sources.

Compelling Question

How can you determine the purchasing power of wages and earnings over time?

Related:

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Education Level: 9-12 College
Subjects: Economics Data Literacy
Concepts: Inflation/Deflation Income Markets
Resource Types: Data Lesson Charts/Graphs
Languages: English