Essential Questions

 

1.  How is inflation measured?  (CPI, PPI GDP deflator)

2.  Who does unexpected inflation help and who does it hurt?

3.  What is the difference between real and nominal interest rates?

4.  How can deflation be worse than inflation?

5.  Which problem is more important to solve inflation or unemployment?

6.  What happens when the Phillips Curve shifts to the right?

 

Formulas/Graphs

 

The Phillips Curve