How do u explain inflation to students in simple language?

Question

How do u explain inflation to students in simple language?

Answer 1

Haven't given this any serious thought, and it's not my field, but why not use a balloon as a visual aid? You could show them a can of Coke or something, and inflate the balloon half way, and then fully inflate it to show that the cost has increased. Or maybe have different size balloons with prices written on them?

Answer 2

Explain that in a proper economy you buy a dozen eggs for $1, with inflation you buy 1/2 dozen eggs for the same price since the $ is worth less.

Answer 3

Please use this example:

Use 3 - 4 students, few pennies, & prepare only 3 - 4 apples. 3 student as  buyers, 1 student as apple seller, teacher as bank.

1. Give them 1 penny to buy more apples that already prepared (3-4 pieces), so they will learn that 1 penny = 1 apple. Also the seller also learn that an apple can be exchanged for a penny. And return the whole thing back to zero.

2. Give them 10 pennies to buy more apple as many as they can get and negotiate with the seller naturally. Tell the seller that they have more pennies and give the unit to the highest beater. Don't tell to increase the price up to 10 pennies. Let it moves freely. As they learn that they have to use the whole pennies to get as many as possible, they will notice that the seller will release the LIMITED products to the highest beater. The seller will understand that the value of an apple will be more than just few pennies. They will notice that the pennies value is less than the value of an apple.

This is the result of too much money in the market since the supply remain the same. The value of money is getting less and price is up naturally. And they will get less of their money. More money doesn't mean more items. the money will be valued less.

Inflation: too much dollar in the market that lead to increase in price.