These Economics W.I.R.E.D. activities recommend web links that relate to key concepts of each chapter of the textbook. For each link, there are instructions to guide you to specific information, followed by several discussion questions or exercises.

Key Concepts: The Aggregate Demand Curve, The Inflation Adjustment Line, Combining the Aggregate Demand Curve and the Inflation Adjustment Line

S. Morgan Friedman—The Inflation Calculator

Enter "1000" for the amount of money, "1970" for the initial year, and "1980" for the final year. Click "Submit" to run the inflation calculation.

• Explain how inflationary expectations can be formed and sustained in an economy (Hint: consider the Inflationary Adjustment Line) 
• Explain how current inflationary expectation may influence future wage rates.
• Review the U.S. "Employment Cost Index" graph at the Bureau of Labor Statistics. Explain how rising employment costs may shift the inflationary adjustment line.