"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?
88 comments:
My Question: What is one consequence when the economy is too hot?
Mr Pye's Question: How is the Economy like Goldilocks?
My Answer: Just like how Goldilocks didn't like how the porridge was too hot or too cold, the economy doesn't function at its best when it is too high or too low.
Varsha Martin
2nd pd
Wara's Question:What is one consequence when the economy is too hot?
My answer:Higher temperatures lead to substantially lower economic growth in poor countries, And while it’s relatively straightforward to see how droughts and hot weather might hurt agriculture, the study indicates that hot spells have much wider economic effects.
My question:What happens to the economy when the temperature is too cold and the consequence of it?
Laura Rezmer-Cooper
Period 2
Varsha's Question: What happens to the economy when the temperature is too cold and the consequences of it?
My Answer: The Economy experiences deflation (decrease in prices). Consequences of this is that people might delay making a purchase because they think they can get a better deal later. If too many people have this attitude, it could slow the overall economy. Therefore the demand for products goes down, and businesses' start cutting back and people begin to lose jobs.
My Question: Why is having a low inflation rate hard to maintain?
Minnu Augustine
Period 2
Laura's question: Why is having a low inflation rate hard to maintain?
My answer: Economies can experience shocks and we need something to absorb that shock. If the inflation rate is already low, then the Fed has limited options. As an option, the fed could lower the fed funds rate (the overnight interest rates charged for loans). Other than that, the fed can not lower rates so they make programs to make up for the loss.
My question: How do unstable prices in the economy redistribute wealth between lenders and borrowers?
Minnu's Question: How do unstable prices in the economy redistribute wealth between lenders and borrowers?
My Answer: If the inflation rate suddenly rises or falls in situations where a lender has loaned a borrower money, the borrower may pay back a value of money that is less than the value he initially received if he borrowed it when interest rates rise and vice-versa.
My question: If there were uncontrollable inflation, would the impact in interest rates cause the stock market to rise or fall?
Jignesh's Question: If there were uncontrollable inflation, would the impact in interest rates cause the stock market to rise or fall?
My Answer: If there were to be uncontrollable inflation, people would be saving their money instead of borrowing or investing since interest rates will try to accommodate according to the inflation. Due to people saving money, less people will be investing in the stock market, therefore it will fall.
My question: What does inflation do to small companies?
Farrah Au-Yeung
4th period
Nathan's question: What does inflation do to small companies?
My answer: Inflation is not favorable for small companies who do not have much capital as larger companies. Small companies are usually unable to adjust to the higher production costs or capital expenditures, and their employees' real wages actually decrease even though their nominal wages are higher. As a result, the employees of small companies are hurt by inflation, and these companies must put in extra effort to catch up to rapidly increasing prices.
My question: How are unemployment and inflation related?
Milen Thomas
6th period
Farrah's question: How are unemployment and inflation related?
My answer: They are inversely related. When unemployment is low, businesses have to compete more for workers, forcing wages up. Higher wages increases labor costs, which businesses will counter with higher prices. Also higher wages means increased consumption driving up demand, which also increases prices. Hence, when unemployment rates decrease, inflation increases, and vice versa.
My question: How do government policies influence inflation in a nation?
Sharanya Chander
2nd period
Milen's question: How do government policies influence inflation in a nation?
My answer: One way that the government can influence inflation is by printing more money, which leads to hyperinflation, decreasing the value of the money itself.
My question: What are some ways that falling prices can affect individuals?
Namisha Mithani
Period 6
Sharanya's question: What are some ways that falling prices can affect individuals?
My answer: Falling prices affect employees because of the risk of losing their job. This would occur due to the demand of goods and services going down.
My question: Are low inflation rates easy or hard to produce, and why?
Rizna Noorani
2nd period
Namisha's question: Are low inflation rates easy or hard to produce, and why?
My answer: Low inflation rates are harder to produce because prices tend to rise more and then they fall. Higher prices mean higher inflation rates.
My question: What is the current inflation rate?
Shreyans Rana Per. 2
Rizna's Question: What is the current inflation rate?
My Answer: The current inflation rate is 1.5% as of September 2016.
My Question: What effect does inflation have on job salaries? (Is it a positive or negative effect?)
Meryl Zachariah
2nd pd
Riznas question: What is the current inflation rate?
My answer: The current inflation rate of September 2016 is 0.24%. This is a healthy inflation rate considering that its hard to produce low inflation rates.
My question: How often is inflation rate released and how does the frequency of it keep us on track?
:) :) :)
Meryl Zachariah
2nd pd.
Shreyans' question: What effect does inflation have on job salaries? (Is it a positive or negative effect?)
My answer: Considering that the current value of money would be decreased, it can similarly decrease your purchasing power.Your salary will still stay the same though. Personally, i would consider this a negative affect since purchasing power decreases.
My question: How often is inflation rate released and how does the frequency of it keep us on track?
Ashley Verghese
4th Period
Meryl's Question:How often is inflation rate released and how does the frequency of it keep us on track?
My answer:Inflation rate is released frequently and it helps us keep track of the prices in the economy whether it is is deflating or inflating. It keeps us on track of how the economy is doing.
My questions: Why is it bad to have such a low inflation rate?
Mervin Cherian
2nd Period
Ashley's Question: Why is it bad to have such a low inflation rate?
My answer: When there is low inflation, people start to save more hoping to buy things later at lower prices. Low inflation disables the economy. The economy will not be able to do as well as it used to be able to .
My question: Why is it so bad when prices become unpredictable?
Ryan Hunter
6th Period
Mervin's Question: Why is it so bad when prices become unpredictable?
My answer: When prices become unpredictable, consumer confidence will fall and consumers will start spending less money, leading to recession
My question: How often is the consumer basket updated, and what effect does the frequency of these updates have on the inflation rate?
Ryan's Question: How often is the consumer basket updated, and what effect does the frequency of these updates have on the inflation rate?
My answer: It is updated monthly and the frequency of updates affects the precision of the inflation rate.
My question: Is inflation healthy in an economy? Why or why not?
Justin's question: Is inflation healthy in an economy? Why or why not?
My answer: A little inflation is good for an economy because you want money to be in action rather than still. It increases economic output and productivity. However, too much inflation is dangerous.
My question: What effect does inflation have on jobs?
Vanessa Marcano
Period 2
Vanessa's Question: What effect does inflation have on jobs?
My answer: inflation causes prices to rise, with a person's set income, purchasing power decreases along with demands of goods and services due to being unable to purchase items. Demand of goods deceasing leads to being unable to pay workers for those goods and eventually gets the workers fired. So in summation, inflation creates a higher rate of unemployment.
My question: What are the consequences of prices falling rapidly?
Sabrina Tortolero
period 6
Brenda Benson-Okey
Period 2
Brenda's Question: How is purchasing power affected?
My answer: High inflation causes unemployment, which is either caused by uncertainty or lack of competitiveness. With uncertainty in mind, inflation discourages firms from investing and these firms believe there is no profitable benefit. Low investment rates means lower economic growth, thus higher unemployment ensues.
Sabrina's Question: What are the consequences of prices falling rapidly?
My answer: Prices falling rapidly can lead to massive deflation. This can lead to economic stagnation and high unemployment. This
is because deflation discourages spending as consumers believe that prices will be lower in the future. Deflation is also
bad for people ind debt. This reduces the purchasing power of consumers and business.
My Question: What factors would cause a general inflation and deflation of prices in an economy
Daniel Doucet
Period 2
Yash's Question: What factors would cause a general inflation and deflation of prices in an economy?
My Answer: The federal reserve controls the money supply of the US, and when they print money they attempt to stop deflation and make sure that they are printing equal to the amount of money that needs to be replaced. When the federal reserve prints too much, inflation occurs, where the value of the dollar drops due to the inflated amount of dollars in the market. Deflation is the exact opposite, where the value of the dollar increases due to the underestimation of the federal reserve when printing new money. Economic recessions are often paired with deflation, and hyperinflation can occur soon after if a government attempts to print their way out of a recession.
My Question: If employees lose their job because the demand for a company's goods has gone down, what type of unemployment is this and why?
Andison Chung
Period 4
Daniels Question: If employees lose their job because the demand for a company's goods has gone down, what type of unemployment is this and why?
My Answer: Cyclical unemployment is a factor of overall unemployment that relates to the cyclical trends in growth and production that occur within the business cycle. When business cycles are at their peak, cyclical unemployment will be low because total economic output is being maximized.
My Question: what are the consequences of a high inflation when the economy is "too hot?"
6th period
Andison's question: What are the consequences of high inflation when the economy is "too hot"?
My Answer: One consequence of high inflation when the economy is "too hot" is that if you are on a fixed income, your purchasing power erodes, which leads to less spending, leading to less demand, leading to less production, which inevitably leads to many people losing their jobs. The consequences are pretty much a domino effect.
My Question: What happens if enough people wait and hold onto their money rather then spending it?
Lloyd Videau
Period 6
Merina question: What happens if enough people wait and hold onto their money rather then spending it?
My answer: Not enough money will be in the economies circulation which will cause a recession because for an economy to be healthy money must be spent. Which is why the government encourages it's citizens to spend it's money.
My question: compare the U.S current inflation rate to it in 2006.
Lloyd's question: compare the U.S current inflation rate to it in 2006
My answer:the inflation rate in 2006 was 3.6% and the inflation rate in 2016 is 2.07% in 2016. which means that the economy as gotten a lot better since 2016. Also, things in 2016 are less expensive than they were in 2006.
My question: what drives up the cost of things, the inflation rate or the actual the actual product?
Andrea Doan
Period 2
Afolabi question: what drives up the cost of things, the inflation rate or the actual the actual product?
my answer: inflation
My question: why does high inflation make running a business unpredictable?
My question: When was the last time the US inflation rate was increasely high and what has our country done since then to keep inflation leveled and balanced
Afolabis Question: What drives up the cost of things, the inflation rate or the actual product
My answer: the inflation rate
Stanleys Question: When was the last time the US inflation rate was incresingly high and what has our country done since then to keep inflation leveled and balanced?
Answer: The last time inflation was very high was during the 1980s-1990s and the government fixed this by giving more power to the banks.
My Question: Is it easier to put more money into the economy or take money out of the economy in order to control inflation.
Jasmine Patience
Period 2
Jakes Question: Is it easier to put more money into the economy or take money out of the economy in order to control inflation?
My Answer: It's easy to print money in attempts to control inflation but this is not a successful way to monitor inflation. The most effective way would be to take money out of the economy and invest it in profitable markets.
My Question: How could public expectation of the price of a good or service to fall impact an individuals employment status?
Sheryl Shajie
Period 4
Jasmine’s question: How could public expectation of the price of a good or service to fall impact an individual’s employment status?
My answer: Public expectation of the price of a good or service to fall cause people to delay making purchases. People will wait a few months or another year because they think they will get a better deal. This will cause people to lose jobs in the long run.
My Question: How does falling prices affect an individual that wants to borrow money?
Sonia Gupta
Period 2
Sheryl's question: How does falling prices affect an individual that wants to borrow money?
My answer: Collateral changes due to falling prices. You will not get enough value out of your collateral. Also, it is hard to pay any debt you have accumulated.
My question: What happens when the federal fund cannot lower rates any more to spur growth?
Period 2
Sheryl's question: How does falling prices affect an individual that wants to borrow money?
My answer: The bank can say the amount your offering cannot secure the loan.
My question: Why is a low inflation rate hard to produce?
Period 6
Myrakel's question: "Why is a low inflation rate hard to produce?
My answer: Because central banks are cautious of potential shocks.
My question: How can uncertain prices be worse than having inflation that is too high or too low?
May Liew- Period 6
Reem's Question: How can uncertain prices be worse than having inflation that is too high or too low?
My Answer: It could redistribute wealth between borrowers and lenders. Lenders would also adjust their loan terms to compensate for making a loan in a risky environment where they could lose money.
My question: If inflation rates are already at or near zero, how does the federal reserve spur economic activity?
Period 6
Reem's Question: How can uncertain prices be worse than having inflation that is too high or low?
My Answer: If prices are always jumping around and never consistent, that could potentially redistribute wealth to lenders and borrowers. This is because lenders will adjust their loan terms when prices are moving around and unstable in order to compensate for making a loan where they could lose money instead of making a profit. This is called interest premium which can slow the economy because people won't borrow as much or purchase as much as before due to higher rates.
My Question: How do people's mindsets about changing prices affect the economy?
Aneeka Khan
4th period
Sharon's question: How do people's mindsets about changing prices affect the economy?
My answer: People get scared when they suspect that the economy is not doing too well which leads to the economy actually doing bad because people don't spend money, sell all their stocks. So, when people suspect something going on with the economy and take action against it, it really affects the economy.
My question: What type of unemployment is hardly hit when there is high inflation?
Erica Wong Period 2
Aneeka's question: What type of unemployment is hardly hit when there is high inflation?
My answer: Structural employment, because frictional and cyclical can be affected by high inflation. Out of all three, structural is the least affected because it has more to do with advancements in the industry rather than money.
My Question: Why does the government try to keep prices stable?
James Ware
Period 4
Aneeka's question-What type of unemployment is hardly hit when there is high inflation?
My answer-Philips curve is an economic concept that states with economic growth comes inflation and lower levels of unemployment. This however is debated.
My question-How do banks calculate the interest rate to avoid losing money or setting it too high for people to pay back?
Gabrielle Le
Period 6
James' question: How do banks calculate the interest rate to avoid losing money or setting it too high for people to pay back?
My answer: Banks probably enlist the help of statisticians and those with knowledge of the economy in order to predict inflation rates. Lenders want the rates to be high enough to make a profit, but not impossible to pay back. They probably observe the previous years' trends and inflation rates to make their decisions.
My question: Is having a little inflation healthy for the economy? How?
Salman Bawani
Period 4
James's Question - Banks predict what inflation is going to be over the term of the loan and then set the interest rate of the loan higher than that so they ca make money. However, if the inflation changes in a way not predicted by the banks than the makes could make a different amount of money than expected.
My Question - How is not knowing if price increases are caused by supply/demand or inflation bad for businesses?
Marcella Winfiele
Period 6
Gabby's question: Is having a little inflation healthy for the economy? How?
My answer: It depends on the situation. It helps lenders because it ensures a good profitability, as well as those who borrow money have a better chance based upon the overall net worth/debt ratio.
My questions: What happens to borrowers if prices are falling?
per.2
Marcella's question: what happens to borrowers if prices are falling?
My answer: Your collateral will not be worth what it once was, the value will be much lower so the bank will not give you the loan.
My question: what is better for Borrowers, inflation or deflation? and why
Jessica Jose
4th
Marcella's Question- What happens to borrowers if prices are falling?
My answer-When prices fall, the borrowers in the end will benefit from the loan.
My question- What is the end effect of interest premiums?
Marcella's question: What happens to borrowers if prices are falling?
My answer: When overall prices fall in the economy, there is deflation. Products are devalued. And with deflation, the collateral that a borrower may wish to exchange in order to secure the loan from a lender may not be worth as much as the borrower thought it would. As well, the borrower may not see the lending as 'worth it' as the value of the collateral does down with.
My question: What are some ways that the government can help a stagnant economy?
-6th period
Jessica's Question: What is the end effect of interest premiums?
My answer: Since interest premiums charge higher for a loan made out to a borrower, there is less demand for a loan because consumers don't want to pay as much, which leads to less productivity in the economy, stagnancy, and less jobs as companies are not making as much with the cut production and less income.
(aforementioned question)
-6th
answer - to keep people employed while keeping prices stable
question- why are stable prices necessary for business ?
4th period
Answer to samksh khanna's question - stable prices help companies predict and prepare for the future and also prevent them from wasting capital resources on inflated prices.
My question - what is one consequence of high inflation?
Nima Jamshidi
2nd Period
Jenny Wang's Question: What are some ways that the government can help a stagnant economy?
My Answer: They can start programs in things like infrastructure, education, research, and health in order to create jobs.
My Question: If inflation is so bad, why do governments purposefully introduce it into the economy anyway?
2nd period
Answer to David's question- a consequence of high inflation could be the rapid decrease in value of a countries' currency.
My question- What are some ways that Deflation could occur?
Krtistofer's Question: What are some ways that deflation could occur?
My Answer: Deflation would most likely occur in a situation where the money supply lessens, such as if the government decides to remove money from the economy for some reason.
My Question: Is a completely stable economy in which there is no inflation or deflation possible?
Answer to Pauls question: Even if it is possible, it is not safe to be in an economy that has no inflation rate
My question: how do we measure inflation and deflation?
Anu Thomas Period 2
Samaksh Khanna's Question: Why are stable prices necessary for business?
Stable prices are necessary for businesses because if prices increase and workers wages do not increase, they will spend less money. If consumers spend less money there will be less demand for goods and services and businesses will loose profit and have to cut back on their production. Unstable prices are also unpredictable.
Anu Thomas's Question: Why is deflation bad for the economy and why does it occur during times of recession?
Answer to Pauls question: It is not safe to be in an economy that has no inflation rate, thus there's no possibility of it being stable.
My question: how do we measure inflation and deflation?
Shaban Momin
4th Period
Kristofer Williams' question: What are some ways that Deflation could occur?
My answer: Deflation can either occur when the growth of the economy outpaces the growth of the money supply, also when the drop in the money supply outpaces the contraction of the economy.
My question: What is inflation and what is deflation, explain the difference between them?
Jithin Joy
Period 4
Anu Thomas's Question: Deflation is bad for the economy because it causes delayed spending, nominal wage cuts, higher interest rates and a higher burden of debt ratio. Deflation is the opposite of inflation and generally causes prices to go down after a recession. Downed prices are cause businesses to cut back and people may end up losing their jobs.
My Question: Why does the Federal Reserve closely regulate money?
Jithin's Question: Why does the Federal Reserve closely regulate money?
My Answer: The reason the Federal Reserve must closely regulate money is because they must try to keep the US economy as stabilized as possible, assuring that our money is not inflating or deflating at a rate that we could not come back from.
My question: In what specific ways does the Federal Reserve regulate US money?
2nd Period
Shaban Momin's question: What is inflation and what is deflation, explain the difference between them?
My answer: Inflation is when the price of goods and services rise, while deflation is when they decrease. Inflation is caused when goods and services are in high demand, creating a drop in availability. Deflation happens when too many goods are available or when there is not enough money in the system.
My Question: Why is deflation bad for the economy?
Period 4
Jithin Joy's Question: The Federal Reserve closely regulates money because the economy must be at a happy medium in order for there to be max production. They must decide how much more or less money the allow to circulate in the economy so as to limit the impact inflation or deflation has on the overall employment.
My Question: what, if any, are the benifits of havig no inflation or deflation in an economy?
Period 6
Kendall's question: Countries trade with each other to meet their need of scarce resources and services that they may not be able to obtain in their own country.
My question: What is the effect of hyperinflation on an economy?
Period 4
Because Kendall stole my question....
Kendall's answer: countries trade with one another becuase it benefits them to spend more time doing thing efficiently that they can cheaply than doing something that costs a lot and takes resources away from other productions that another country does better. its simply about who has the lowest opportunity cost.
Kendall Truong
Period 2
Chloe Benson's question: To measure inflation and deflation, we must know the current CPI (Consumer Price Index).
My question since someone else took my question: Why do countries trade with each other?
Victor Varghese
Period:2
Kendall's question: "Why do countries trade with each other?"
My answer: Countries trade each other when they don't have enough resources or capacity to satisfy their needs and wants.
My question: Which is worse the economy being too hot or cold?
Nicole Aguilar
Period 4
Victor's question: Which is worse the economy too hot or cold?
My answer: They are both equally bad because inflation could cause money to become invaluable while the prices are extremely high, but deflation is just as bad because it not only slows down the economy immensely, but it causes people to lose their jobs and stable income.
My question: How does deflation cause harm to the overall economy?
David Adeogba
Period 6
Nicole's question: How does deflation cause harm to the overall economy?
My answer: Deflation can hurt the overall economy by slowing it down. Consumers see that the prices of products are going down and wait longer to make purchases. This causes a decrease in the demand for products, which causes businesses to cut back on production of those products, which in turn can lead to an increase in unemployment.
My question: How do central banks generally respond to low inflation rates?
Nicole's Question: How does deflation cause harm to the overall economy?
My Answer: when people think prices are going to fall in the future, people delay making purchases. if enough people have that attitude it will slow the overall economy which leads to low demand, slow businesses, and unemployment. additionally, getting a loan is risky because the amount you are asking for isn't what it once was. you won't get enough money out of your collateral. also, wages will be stagnant and declining which can soon result in slow debt pay-off.
My question: why should you not have a low inflation rate?
Period 4
My question: If inflation somehow hit zero, would the economy run the same? Would anything change?
David Adeogba's question: How do central banks generally respond to low inflation rates?
Response: The central bank will raise or lower its interest rates depending on above-target or below-target inflation (the predicted rate of inflation the bank estimates to be in the future). Raising interest rates will usually cool the economy and cause a decrease in the inflation rate; lowering interest rates usually accelerates the economy, thereby boosting inflation. When the inflation rate is low, the bank will stimulate growth in the economy by lowering interest rates.
Sean Liu
Per. 4
Pierre Oviedo's question: If inflation somehow hit zero, would the economy run the same? Would anything change?
My answer: Low inflation rates are preferred, however it is often avoided by central banks because the bank will have limited options when the potential "shock" cannot be absorbed. Meanwhile the economy would not run the same and economists will react differently to avoid low inflation rates.
My question: What are the two major factors that lead to unemployment trouble and why?
Hannah Enyioma per. 6
Sean's Question: What are the two major factors that lead to unemployment trouble and why?
My answer: High inflation and deflation are the two major factors that lead to unemployment. High inflation can lead to unemployment because higher prices due to inflation can lead to a company making poor business purchases and lead to business owners having to cut employees to keep up with rising costs. Deflation can lead to unemployment because consumers may think it is more reasonable to wait to purchase products and if enough people wait long enough to purchase products, demand falls causing production to fall causing unemployment.
My question: How does deflation affest collateral and debt?
Sean Liu: What are the two major factors that lead to unemployment trouble and why?
My Answer: Demand and Production going down would lead to unemployment troubles because as the demand goes down, businesses slow down and are less likely to be able to employ as many people.
My Question: When people suppose prices will fall in the future how does that affect the time of their purchase?
My answer 2: Deflation affects collateral and debt because as economy deflates people may start to delay their purchases which may cause demand to go down as well as production which may put more people in unemployment. When borrowing money, the collateral you once out up isn't worth what it used to be because prices have fallen. It will also be harder to pay off debt because wages are being cut
Anjana Thomas 2nd Period
Saniha Mody's Question: Why should you not have a low inflation rate?
Answer: Although the prices would be low the overall income for many people would also reflect on that and be low as well. Leaving no room for people to actually spend money.
My Question: What happens to borrowers and lenders when deflation occurs in the economy?
Barry Stainrod
6th period
Question for video: What could a possible negative consequence of inflation reaching an equilibrium for prolonged period of time?
Answer: When people suspect prices to fall they will tend to hold on to their money until the price change happens. In their anticipation, however, they can inadvertently cause the price to actually rise.
Question: What effect does inflation have on peoples choice on saving money?
Grace Swift
If the economy operates based on consumers price expectations, how could the government regulate consumer spending to stabilize it?
Answer: Inflation causes buyers to save their money in hopes for the economy to rebound, which makes the inflation worse
Question: What is a GDP deflator?
6th Period
Grace's Question: What is a GDP deflator?
Answer: a measure of the level of prices of all new, domestically produced, final goods and services in an economy
My Question: How does unemployment affect real inflation rates?
Allen Johnson 6th Period
Smitthu's Question: How does unemployment affect real inflation rates?
My answer: If unemployment spikes upwards, inflation decreases.
My Question: How and why is inflation created?
John Abraham
Period 6
Allen Johnson's Question: How and why is inflation created?
My answer:if demand is growing faster than supply, prices will increase. excess aggregate demand (economic growth too fast)
My Question: Why is a low inflation rate hard to produce?
John's Question: Why is a low inflation rate hard to produce?
My Answer: Low inflation rate is hard to produce because the government needs to keep adding money into the system in order to keep spending it. And when they add money into the system inflation increases.
My Question: Why is it important to not have a high inflation rate?
Robert's Question: Why is it important to not have a high inflation rate?
My Answer: High Inflation reduces the purchasing power of end users through decrease of the value of money.
My Question: What impact does low inflation have on global economics.
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