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Inflation is the rate at which the average level of prices is rising. In the U.S. the inflation rate is most often measured by the annual percentage rate of increase in the Consumer Price Index. (The CPI includes prices of goods and services thought often bought by an average family).
How rapidly have consumer prices been rising in the United States? What are some recent changes which have affected the CPI?
A goal often stated by policy-makers is to keep inflation rates about about 2 percent (sometimes 2-3 percent; 2% is thought of as BETTER than zero inflation for the overall health of the economy). How has the U.S. actual inflation rate been compared to the 2% goal.
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
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"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"
Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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