Common Misconceptions about Budget Hero
There are many common misconceptions about budgets, whether personal or federal! Students might not realize that world events can have a huge influence on the economy, so the inflation rate has to be constantly adjusted. Help students analyze how different types of events require an increase in inflation and which cause a decrease (and why). Budget Hero will help them make connections between game play and the economic world.
You can also guide students to understand that inflation can be lowered when the federal funds are set higher, but this will also temporarily increase unemployment. Unemployment rates can be lowered by setting the federal funds close to or below the inflation rate.