INTRODUCTIONIn this lesson, students will (1) download the CPI from the FRED database hosted by the St. Louis Federal Reserve Bank; (2) calculate the prices of household staples from earlier time periods into current prices; (3) conclude the lesson by discussing some of the limitations of these conversions with special attention given to changes in technologies, the weights placed on the goods AND services in the representative basket of the urban consumer (not rural), etc.
RESOURCES1981 Economy/Prices: This website provides information about the economy and prices of various items in 1981. For prices in the 1980s, navigate to Flashback Economy.
www.1980sflashback.com:80/1981/economy.asp
St. Louis Federal Reserve Bank FRED database: At this website, click "Browse"; select "Consumer Price Indexes CPI"; select "CPIAUCNS" for "Consumer Price Index for All Urban Consumers: All Items". Click "Edit Graph" and then hit "Refresh Graph" and the appropriate graph will pop up. Click on "Consumer Price Index for All Urban Consumers: All Items, Monthly, Index 1982-84=100, Not Seasonally Adjusted" at the bottom of the screen to access graph data and options. By clicking "View Data" on the top left you will be able to see all dates and values. All other graph options are listed below the graph.
http://research.stlouisfed.org/fred2/graph/?
"How Much Does It Cost Now?": A worksheet activity for this lesson.
www.econedlink.org/lessons/docs_lessons/865_HowMuchDoesItCostNow1.pdf
"How Much Does It Cost Now?" KEY: The key to the worksheet activity for this lesson.
www.econedlink.org/lessons/docs_lessons/865_HowMuchDoesItCostNowKEY2.pdf
Focus on Economic Data: Consumer Price Index and Inflation, April 15, 2009: An excellent EconEdLink lesson that correlates to Consumer Price Index (CPI).
www.econedlink.org/lessons/index.php?lid=838&type=educator
When Gas was a Quarter!: Here is another excellent EconEdLink lesson that relates to Consumer Price Index (CPI).
www.econedlink.org/lessons/index.php?lid=373&type=educator
Was Babe Ruth Under Paid?: One more excellent EconEdLink lesson that correlates to Consumer Price Index (CPI).
www.econedlink.org/lessons/index.php?lid=604&type=educator
Measuring Worth: An article explaining the relative value of U.S. dollars from 1774 to the present. It also contains a calculator that teachers may find useful for this or other lessons.
www.measuringworth.com/uscompare/
PROCESS1. Show how to inflate prices between two time periods.
2. Distribute the worksheet, "How Much Does It Cost Now?"
3. Ask students to use a computer to download CPIAUCNS data series from the FRED database.
4. Ask students to complete the worksheet and discuss limitations.
This the link to the page that will definitely help you guys on the questions.....
ReplyDeletehttp://www.bls.gov/data/inflation_calculator.htm
It's like wow! How cool is that going to the movies for a dollar! There is still a Cinema that my aunt and I go to that its a dollar to go in but in total its like 2 dollars because taxes. They play new movies but not everyday like they do in the big theathers. You go to the website and it list the time of the movies. Its pretty cool!
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