wmdfYWwf_di4$ke

Economics Case Studies Inflation Case Study #1- Read the scenario and answer the questions given the information below You're 25 years old and you work in the back office of a popular family restaurant. You're in charge of ordering everything that the restaurant needs and, over the last three months, you've noticed that the prices of key ingredients, like beef, have significantly increased. This wasn't a big deal before, but now it's affecting the restaurant's profit. To figure out what's going on, you read a short article about inflation. You also learn that the inflation rate in your country is 7.54% which is 3% higher than economists forecasted, Inflation is the increase in the prices of goods and services over time. Inflation cannot be measured by an increase in the cost of one product or service, or even several products or services. Rather. inflation is a general increase in the overall price level of the goods and services in the economy 1. The price of beef has gone up over 60%, Is this entirely because of inflation? Why or why not? 2. According to the article, why doesn't "core Inflation" include the prices of food or energy? 3. The price of lettuce has fallen 10%%. How is this possible if the inflation rate is 7.54%? 4. What is the downside of changing the prices on the restaurant's menu to keep up with inflation? 5. The owner of the restaurant offered to give you a 2% raise. Adjusting for inflation, will your real wage increase, decrease, or stay the same? Why? 6. Do you think that you should ask for a bigger raise? Why or why not? 7. The unemployment rate in your country is falling and is the lowest it has been in decades. Will this likely increase or decrease the inflation rate in the future? Why? You are currently paying off a $5,000 car loan with a 5% fixed interest rate. Is inflation helping you or hurting you? Why? You are thinking about taking out a business loan to open your own restaurant. Do you think that the interest rate for a loan is going to increase or decrease in the future? Why? to Help: https//youtube/@_C3whhH2gc Do not post onli License expires 7/1/20 CCopyright Jacob Clifford, 20