Description
Inflation is said to occur when the average price level increases. Although government statisticians calculate changes in the average price level by using a variety of indexes, consumers often take notice as we go about our everyday lives. Increased prices at the grocery store, higher prices at the pump for gasoline and increases in our utility bills make us aware of price level changes even if we have not paid attention to what the indexes are saying.
When we think about prices today, we often feel that they have increased dramatically over the years. People sometimes reminisce about the "good old days" with their lower prices. Were things really better back then? Was everything so much cheaper? Let's see!
Here's a fun little website that is full of nostalgia and serves as a great way to learn about past times and events. Just click on years you'd like to "visit".
Heartbeats One and Two
Respond to the following:
- Select two time periods, preferably about a decade apart. What changes happened during that time period that most surprised you? Why?
Explanation & Answer
I chose two time periods, the first one was the year 1955 and the second period was the year 1965.First, one change was the average income. The average income increased from $4137 in 1955 to $5942 in 1965. This, of course, would be expected as ...
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