Yellen: Not Seeing Significant Surprises in Inflation

Yellen: Not Seeing Significant Surprises in Inflation

Assessment

Interactive Video

Business

University

Hard

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The video discusses the differences between actual inflation and inflation expectations, highlighting the factors influencing inflation such as energy prices and the dollar's value. It explains how core inflation is behaving as expected and the importance of monitoring inflation expectations through surveys and market measures. The video also delves into the concepts of inflation compensation and risk premium, noting their impact on economic indicators.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the two main factors mentioned that have influenced the low levels of inflation?

High energy prices and a weak dollar

Past declines in energy prices and increases in the value of the dollar

Increased consumer spending and low unemployment

Government subsidies and tax cuts

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is core inflation expected to behave according to the transcript?

It is expected to remain stable at current levels

It is expected to move up towards the 2% objective

It is expected to fluctuate unpredictably

It is expected to decrease significantly

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role do inflation expectations play in economic theory?

They are irrelevant to price and wage setting

They are crucial for setting interest rates

They influence price and wage setting decisions

They determine government fiscal policy

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the difference between inflation compensation and inflation expectations?

Inflation compensation includes an inflation risk premium

Inflation expectations are always higher than inflation compensation

Inflation compensation is a direct measure of future inflation

Inflation expectations are irrelevant to market measures

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might the inflation risk premium have declined significantly?

As a result of government intervention

Due to increased market volatility

Because of stable inflation expectations

Due to a decrease in global trade