"drawing board" on their website. Watch the following video (Click on post title to go to video) and in your post you must do two things.
1) Come up with a legitimate higher order thinking question over material covered in the video.
2) Provide an answer to someone else's question that they posted. (In your answer be sure to list whose question it is you are answering.)
3) Once someone's question is answered it is no longer usable by anyone else.
3) Once someone's question is answered it is no longer usable by anyone else.
My Question #1"How is the Economy like Goldilocks?
73 comments:
Vinit S.-4th
1. What are the disadvantages of having a low, stable inflation rate of 0-1%?
2. Mr.Pye's question;
When Golidlocks tried the porridge that was too and and too cold, it didn't turn out well. The same thing goes for the economy. When it is too hot or too cold, there is less demand for goods and services which makes businesses cutback which leads to people getting fired. There is a major connection between stable prices and maximum employment.
1. What is it called when prices rise but income remains constant?
2. Vinit's question:
Hard to produce, economies always face shock and when rates are at or near zero, the fed has limited options to absorb these shocks.
Julia Mathew 2nd period
1. How is price stability and maximum employment related?
2. Noah's Question:
There is high inflation.
1. Whenever there is an inflation, how does it affect a lender and a borrower?
2. Julia's question:
The more consistent the prices are the less likely for unemployment to occur and more likely for employment to rise.
1.) How does the decrease of purchasing power when inflation rises affect businesses?
2.) Chris' question
The borrower is able to payback the lender with money that has less value.
Thanh Vo
Period 6
1. How are the outcomes of an economy that is too "hot" similar to the outcomes of an economy that is too "cold"?
2. Nicholas's question
When inflation rises and your income does not increase, you will have a decrease in purchasing power which results in less spending. Demand decreases, and businesses will eventually cut back, leaving people jobless.
Amira Nickerson
2nd Period
1.How does deflation impact businesses and business owners?
2.Thanh's Question
Both a hot economy and a cold economy lead to higher unemployment rates.
Meghna George
2nd period
1. What kind of trouble does both high inflation and deflation bring?
2. Amira's Qurstion
Businesses slow down and have to cut back.
Camdyn Brocail-Period 4
1) Which is worse- having inflation too high or too low OR having prices variable and uncertain?
2) Meghna George's Question- Inflation brings increased costs and increased unemployment and also time lag before you get a cost of living increase. Deflation sets anticipation of falling prices, consumers delay purchases, causing them to fall still further.
Jerome Roy 2nd Period
1)What happens if you try to make a big purchase using a loan from the bank during inflation?
2)Camdyn's Question: Having prices unstable is worse because when there is inflation or deflation you know and it is very obvious but when prices are unstable you redistrubut wealth between borrowers and lenders.
1) In what ways does a too "hot" and a too "cold" economy effect businesses?
2) Jerome's Question: If the inflation rates rise over the course of your loan the lender is making no profit and you are saving money however when inflation drops it is vice versa and now the lender is making more profit and you are losing money. Also the bankers may decide to raise the loan rates (interest premium) causing people to borrow less which slows the economy down and leads to unemployment.
Tea Thomas 6th period
1. How does the lowering of prices cause employment loss?
2. Mary's Question: Both a "too hot" and "too cold" economy cause a decrease in demand and a decrease in production.
Charith Wijeyesekera 6th Period
1. How can a low inflation rate hurt the economy?
2. Tea's Question: The lowering of prices causes people to postpone their purchases in favor of cheaper deals later on. This leader to a slowed economy and slowed businesses. These companies then have to cut back costs which is usually done by firing employees.
1) what are some ways the Fed can cushion the economy in times of economic 'shock'?
2) Charith's Question: A low inflation rate allows for prices to fall, thus making people think that if they wait, the prices will continue to fall and don't buy now. This can further slow the economy and produce a positive feedback loop in which prices fall, people don't buy because they think prices will continue to fall, prices continue to fall and so people don't buy and so on, which leads to slows in production and eventual unemployment problems.
Timothy Chang, 4th period
1. Why do lenders charge interest premiums?
2. The federal reserve typically lowers the fed funds rate, which is the overnight interest rate that banks charge each other, in order spur economic growth. This works when the inflation rate is not too high and not too low, but if inflation is already near zero, banks cannot lower rates any more and must develop programs to compensate for this problem.
Timothy Chang
My answer was in response to Francis's question
Anna Lee
2nd period
1. What damage do interest premium rates cause to the economy?
2. Timothy Chang's question: Lenders charge interest premiums because they want to compensate for making a loan in a risky environment. If the economy inflates too much then the lenders will loose money.
1) what is the relationship between prices and employment??
2)Anna's question: Interest premium rates cause banks to lose money and therefore slowing down the economy. Jobs are then lost as companies need to accommodate for the money that they lost.
1) what is the relationship between prices and employment??
2)Anna's question: Interest premium rates cause banks to lose money and therefore slowing down the economy. Jobs are then lost as companies need to accommodate for the money that they lost.
Amanda Hong Period 6
1) Why is low inflation also not good for the economy?
2) Isabelle's question: If prices increase but customers' income does not, customers will hesitate to buy those products, which decreases the demand of the good. This will in turn cause the production of the supply to decrease, causing the employment of workers to decrease as well.
1) How does inflation effect loans and what does the bank do to still get their money do?
2) Amanda's question: If there is an expectation that low inflation is going to occur and people will be able to receive something much cheaper later. People are going to delay their purchases which will eventually lead to demand going down, production going down, and eventually people getting fired.
Hannah Kaplan 6th period
Veronica Wang
Period 6
1. If prices are not stable, how will this cause redistribution of wealth between buyers and lenders?
2. Hannah Kaplan's question: Inflation can cause wages to rise which will let the borrower be able to pay the loan back more quickly which is less interest for the loaner. The fed will purchase securities to spur economic activity or lower fed fund rates between the banks.
Matheus Menezes
6th period
1. What can the Fed do to help cushion economic shocks when inflation is already down between 0-1%?
2. Veronica's question: The redistribution of wealth will depend on inflation rates when prices are unstable. If inflation rates go up, the buyer/borrower gets a better deal, changing more wealth into his possession. However, if inflation rates go down, the lender stands to make better profits which results in increased wealth for the lender.
Rolando Pineda, 6th period
1)Is it fair to say consumers have a significant influence on the economy? Why or why not?
2)Veronica Wang's question: if prices are not stable, buyers are likely to benefit while lenders suffer or vice versa.
Haben Mikaele period 2
1) why do banks benifit from from inflation?
2) Answer to rolando's question: yes it is, consumers are one of the main factors of the economy. Business make all their decisions based on the consumers, and everyone in the world is a consumer.
Joyce Varughese
Period 6
1) How are people who save money affected by the inflation rate?
2) Banks usually charge high interest rates on loans to insure they receive profit in case of high inflation. They can also borrow on pre inflation rates.
Reply to Haben's question.
Dayja Mathews
2nd
1) What would happen to the economy if there wasn't an "invisible hand" to guide the prices back to an equilibrium?
2)Joyce's question - It depends on where they're saving money. If they're keeping it an a bank they're most likely to lose more money due to interest rates going up.
Russell Wong
Period 6
1)What is the last problem apart from having an economy that is too hot or too cold?
2)Dayja's Question- An economy without the invisible hand would either go to either extreme prices or no demand where the economy eventually crumbles.
Nicholas lemon
Pye 6
-What are some consequences of having the price levels in the economy decline?
-Marry s question- if to hot the people have less purchasing power and if to cold it slows down the economy and brings the possibility of people loosing their job.
Andrew Olson
Period 6
-What is a good way that the government can help keep prices stable?
-To answer Nick Lemon's question, people will become hesitant to buy good at the present moment if they believe that prices are going to fall even more at a later date.
Nabeel Momin 4th
1. How does inflation affect banks?
2. Tea's question: lowering the prices of a product causes unemployment because the product is selling for less so they have to cut down on how many people are producing the product In order to make a profit.
Maya Ewens
6th period
-What are some outcomes of higher rates when lenders charge interest premium?
-Russell Wong's Question- The last problem apart from having an economy that is too hot or too cool is having prices that are variable and uncertain.
Ulises Osorio
2nd period
1) how does lowering prices negatively affect the economy?
2)Nabeel's question: Inflation affects banks because when they give out loans they charge an interest rate, which is subtracted from inflation rates, giving the banks their profit. if inflation drops, the banks make more profit, if it rises they lose money. when inflation gets too high the banks raise their interest rates to make more money
Jillian Sara Gicana
6th period
1. How does inflation affect bankers both positively and negatively?
2. Ulises's question: Lowering prices can cause the economy to slow down due to the consumers delay purchases and can also cause a demand for products to decrease and people can lose their jobs.
1) How does increasing the Fed Funds rate spur economic activity?
2) To answer Maya's question, when lenders charge interest premiums, borrowers are less likely to take out loans and the economy stagnates.
Sarah Gosch
2nd period
Maria Francis
Period 6
1) What part of TIMER and STONER describes people waiting to buy because they know prices are going to fall and how does this affect the demand and supply curve?
2)Sarah's Question- Typically fed rates need to be lowered for increased economic activity through buying power but in an economic boom increasing fed funds can decrease economic activity because cutting interest rates will cause inflation therefore the only option in an economic boom is to keep interest rates the same or increase them to keep the boom going.
Madison Bettis
6th period
1)How would consumer's purchasing power affect employment rates within large and small corporations?
2)Maria's question: Expectations are the reason people wait to buy because they think or know prices are going to fall in the future. Expectations affects the supply and demand curve by lowering demand for a product, which can lead to job losses.
Karen Kurian
6th Period
1) What's the problem with confusing relative price change to the laws of supply and demand with inflation?
2) Maddi's question: If consumers have a lower purchasing power, they will probably spend less. This situation will lower the demand for goods and services which will then cause businesses to cut back on expenses such as employees.
Michael Enyioma
4th Period
1) What factors would cause a general inflation and deflation of prices in an economy?
2) Karen's Question: the problem is that the two instances could be caused by different factors that can take place from a private business to a whole economy.
1) What happens to the economy when a lot of consumers think prices will fall in the future?
2) Jillian's question: Bankers give interest rates to lenders when inflation is at a certain level. If inflation decreases throughout the loan time, the banker makes more money than they previously were. However, if inflation rates increase during the loan time, the banker loses money on the loan.
Simone Munajj
6th period
1) What are the benefits of interest premium for producers and consumers?
2) Kyle's question: the demand increases
Alexis Zamora
6th Period
1)Is it better to have a stable inflation rate or to have a rate that's slightly higher in case an economy experiences a shock?
2)Simone's question:interest premiums can benefit producers and consumers in the chance that although lenders might raise how much they charge for their loan, inflation might raise enough to where those who borrow money get the better deal.
Imani Windom
2nd Period
1)What is the immediate result when people believe prices will fall in the future?
2) @alexiszamora: It is better to have a slight higher inflation rate, because at a lower inflation rate fed's can't lower rates much more to spur growth.
Ayesha Parvez
4th period
1) How do keeping prices stable help people be employed over the long term?
2) Imani Windom: When prices fall, a lot of people may delay purchasing in the future.
Tiffany Chan
4th Period
1) What makes it hard to pay off debt?
2) Ayesha Parvez: By keeping prices stable, people will have more purchasing power. This means that people will be more likely to spend more causing more job stability.
1. Why do different institutions react similarly when something does bad?
2. Tiffany Chan's question: the burden of intrest can be benificial to the person charging it but is deteimental to the person oweing it.
1) What happens when people are on a fixed income?
2) Saidya Kistow: Many different institutions react similarly when things go negatively wrong because they learn from previous mistakes made by other companies on how to recover when things go bad.
1) How does Federal Reserve control the amount of money in economy?
2) Olivia Chaney's question: Fixed income is normally for typically retired individuals who rely on their investments to provide a regular income stream. Individuals who live on fixed income face that inflation will erode their spending power. Therefore causing less demands
1) Analyze the relationship between stable prices and maximum employment
2) Johan Johnson: The federal reserve works hard to make sure inflation is low, stable and predictable. When the fed can't lower rates any more to spur growth, they end up purchasing securities, develops special programs to compensate not being able to bring rates below zero.
Period 4
1) Why is it bad to have too low of an inflation rate?
2) Carly Freker: When the prices of goods are too high, people on fixed incomes have less purchasing power so there is less demand for goods and services, leading to less jobs available to provide those goods and services. Unstable prices lead to changes in employment while stable prices enables maximum employment.
Kevin Koruthu 2nd Period
1. Who benefits from inflation in terms of debt and why?
2. Amber Muhammad's question: The economy can slow down as a result of people avoiding the want to buy items as they may believe that the price of an item might drop further. This decrease in demand would slow down the economy.
1)What is one example of when an economy slows down?
2)Angela Gantts question: It is bad to have too low of an inflation rate because people will stop buying products with the mindset that the prices will eventually go down. When having this mindset more people tend to not buy products which will slow down the overall economy, which will then lead to demand going down as well as prices and more people without a job.
Kevin Koruthu 2nd Period
1. Who benefits from inflation in terms of debt and why?
2. Ulises Osorio's question: The economy can slow down as a result of people avoiding the want to buy items as they may believe that the price of an item might drop further. This decrease in demand would slow down the economy as production would drop, which then causes people to lose jobs.
Shanika Jacob- period 6
1. Why is it difficult to maintain a low inflation rate?
2. Kevin Koruthu: Fixed- Mortgage rate holder benefit, because they pay back the debt in devalued dollars.
Paige Price- 4th
1) How does the collateral effect whether or not to get a loan?
2) Shanika Jacob: Keeping inflation low may be unsuitable for the economy. If there was a supply side shock to the economy keeping to the inflation target may cause increased unemployment and lower growth
Hannah Stone- 5th Period
1)What are possible problems that can occur from interest rates at 0 or 1%?
2)Paige Price: If your collateral is too low due to inflation or deflation, then you may not get a loan because your collateral is not worth as much as it was.
*It should say Hannah Stone- 2nd Period
Anam Rizki p.4
1)How do interest premium rates negatively affect the economy?
2) Hannah Stone- Low interest rates drive down bank deposits as well as increase the demand for loans. Lower interest rates encourage firms and consumers to take on more debt.This is dangerous if a loan obtained at a low interest rate is not fixed, but adjusts as rates rise.
Hannah Reyes
Period 4
In the case of an increase in the price of a machine, what are some factors the business owner could analyze in order to figure out if the price increase was due to the increase in the price of the material or inflation?
Hannah Stone: Targeting inflation(?) rates at 0 or 1% would leave an economy without something to absorb shocks. It would leave the Feds with limited options: the Feds cannot spur growth anymore by lowering the Fed Funds Rate, so they rely on purchasing securities and develop special programs to compensate.
Anam Rizki: Rising rates could slow down the economy, which would negatively affect stocks.
Marcus Thompson 2nd period
1:If deflation was high would it be smart it to give out loans to people
2:Hannah Reyes: They could research the value of the type of metal used to make the machine and see if the price as fallen or risen recently. And to see if it was inflation they could also ask around or search for the value of the dollar to see in it has increased or decrease recently
Quentin Collins-2nd period
1. How do premium interest rates positively affect the economy?
Marcus Thompson: It would not be smart to hand out loans to citizens during a period of deflation, due to the value of the American dollar incresing causing people to have more money than needed.
Demarcus Davis
6th Period
1)Is it more beneficial to be the lender or the borrower in an erratic market?
2) Marcus Thompson: From the perspective of the lender it would be very smart because the circumstances would benefit that particular person and they would receive the better end of the deal.
1. why is too much predictability bad in an economy?
2. Marcus Thompson: It would not be smart for a banker to give out loans when deflation is high because, the persons collateral would not be worth as much as it was before.
Evlin Babu 2nd period
1) What other disadvantages could rise from the economy being "to hot"
2) Demarcus question: I would say being a borrower, for if things get tough everything isn't lost
Tim Cummins
2nd Period
1) How would you keep prices stable?
2) Tim Cummins: When people purchase less, they save more money.
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