Teacher's Guide - The Curriculum Project

8. InflationBrainstrormDicussionPairwork1. If you can find a balloon, write the word ‘Prices’ on it. At the beginning ofthe class blow it up in front of the students. Ask them, ‘What is happeningto ‘Prices’?’2. Get them to think about rice, cheroots, hats, fruit and vegetables, clothesand shoes.3. Give them some time, perhaps 30 minutes, to walk around the localcommunity asking questions to local people (preferably older people whocan remember price changes). Ask them to write a short report (half a pagemaximum) about the answers to their questions. Some questions that youmay want to give them to help them?On Your OwnHave prices increased in the last 5-10 years?How much have they increased?Which goods have increased the most?Which goods have increased the least?Have the prices of any goods decreased?Why do you think the prices have increased / decreased?Get each pair to read their report to the class. What have they found?Ask students to read the text on inflation (and deflation). Make sure theyunderstand that inflation only exists if the price of many goods and servicesrises.Then, ask students to read the text on ‘Measuring Inflation: The CPI’.Ask them to think about what goods and services they would put in the‘basket’ for their own community. Make a list.4. Explain to the studentsthat they do not need togive exact answers, justapproximate ones.Answers:1999 = 992000 = 1012001 = 101.42002 = 1002003 = 101.82004 = 102.82005 = 104The Curriculum Project ECONOMICS: an introduction - Teacher’s Guide19