Yellen on the State of the Economy, Inflation

The video discusses the slow economic recovery, highlighting improvements in the labor market, such as reduced unemployment and increased labor force participation. However, challenges remain, including high part-time employment and stagnant wage growth. Despite job creation, output and productivity growth have been sluggish, impacting living standards. Inflation has been below the Fed's target, influenced by oil price drops and dollar depreciation, but is expected to stabilize and rise with labor market improvements.

What has been a significant achievement in the labor market during the recovery phase?

• Reduction in unemployment rate

• Increase in part-time jobs

• Stagnation in wage growth

• Decrease in labor force participation

What is a major concern regarding productivity growth in recent years?

• It has been decreasing by 1% per year

• It has been stable at 2% per year

• It has averaged only half a percent per year

• It has been increasing rapidly

Why is slow productivity growth a serious issue?

• It leads to higher unemployment

• It results in a decrease in part-time jobs

• It causes inflation to rise

• It affects the pace of improvement in living standards

What has been a key factor in the recent low inflation rates?

• Rise in import prices

• Increase in oil prices

• Appreciation of the dollar

• Depreciation of the dollar

What is the expected trend for inflation if the labor market continues to improve?

• It will remain below the target

• It will decrease further

• It will move back up to the 2% target

• It will rise above the 2% target