Inflation 2022

The overall cost of gas, food and other everyday items is increasing at its fastest rate in more than __ years.

• 20

• 30

• 40

• 50

_____ drove more than half of the March increase/inflation.

• Rising gas prices

• Rising shipping costs

• Rising agriculture

• Rising unemployment

The problem is the same as it has been for the past year: ______ are failing to keep up with elevated consumer demand. “It is really a broader imbalance between supply and demand.”

• supply chains

• food production

• employment

• oil and gas

In response, the Federal Reserve, the _____ is raising interest rates to increase the cost of borrowing money. The goal is to slow down the economy and, therefore, inflation.

• U.S. Central Bank

• Congress

• Dept. of Treasury

• NY Stock Exchange

The Federal Reserve aims for an inflation rate of roughly __ percent a year

• 2%

• 3%

• 4%

• 5%

Consider wages: If people expect high inflation, they will demand higher pay.

• TRUE

• FALSE

Higher wages could also mean elevated demand, because people will have more money to spend. This “_______” as economists call it, was a major contributor to high inflation in the 1970s.

• wage-price spiral

• wage-price roller coaster

• elevated supply-demand

• wage-price elevation

Some experts are optimistic. They believe that inflation could start coming down later ______

• this month

• this year

• next year

• by 2024

One positive hint, from yesterday’s report: The core inflation index, which measures ______ excluding more volatile food and energy costs, increased at a slower rate in March than it did in previous months. That could suggest that inflation is peaking.

• demand

• supply

• prices

• (none of these answers)

The Federal Reserve’s actions, could put the economy in a better balance between ________ in the coming months.

• (none of these answers)

• consumption and buying

• production and output

• supply and demand