(Solved): building blocks student Worksheet Explaining how inflation works Inflation is what happens when pri ...

building blocks student Worksheet Explaining how inflation works Inflation is what happens when prices increase over time. But inflation isn't an increase in the cost of a few things. It's an increase in the price of all goods and services in the economy. Inflation affects buying power, the amount of goods and services that can be purchased by a given unit of currency. Instructions (1) Use the line graph to answer questions 1-3. (2) Get the current price of a gallon of milk in your area from your teacher. Use that information, the Consumer Price Index (CPI) Inflation Calculator, and the U.S. Department of Labor's minimum wage webpage to answer the questions in the "Changes in buying power" section. Answer the reflection question. Changes in individual prices Comparing costs and prices of individual things over time can show how inflation affects buying power at different points in time. This graph shows the average price of a gallon of milk and a movie ticket in three different years. It also shows the federal minimum wage in each year. BUILDING BLOCKS STUDENT WORKSHEET Explaining how inflation works 1 of 3 Suminer 2022 5. A gallon of milk cost $\$0.49$ in January 1960 . How much was that equal to in January of the current year? \$ - Is that more or less than what a gallon of milk in your area costs now? - Does that mean it's harder or easier for a person to buy a gallon of milk now than it was in 1960 ? Why? Reflection question Because of inflation, the money you save today might buy less in the future. Why is it a good idea to save more money now? Reflection question Because of inflation, the money you save today might buy less in the future. Why is it a good idea to save more money now?