Inflation and its Causes

What is the Consumer Price Index (CPI) used for?

• To measure the average price change of goods and services over time

• To calculate the total amount of money in circulation

• To determine the unemployment rate

• To track the stock market performance

According to the video, what is one explanation for inflation that gets a lot of attention?

• Too much money chasing too few goods

• Supply chain disruptions

• Massive markups by corporations

• Government policies

Who has been sounding the alarm bell about inflation?

• Larry Summers

• Franklin Roosevelt

• President Biden

• Federal Reserve

What is one of the reasons for the recent bump in wages?

• Corporations keeping wages low in previous years

• Government intervention

• Decrease in labor supply

• Automation and technology advancements

What are some materials used in making diapers?

• Wood pulp and plastic

• Cotton and metal

• Synthetic fibers and glass

• Rubber and paper

What did big corporations do with their record profits?

• Paid out to shareholders and raised prices

• Invested in new projects and hired more people

• Lowered prices to benefit consumers

• Donated to charity and social causes

What tool has the Federal Reserve used to combat inflation?

• Raising interest rates

• Lowering interest rates

• Increasing government spending

• Implementing price controls

What action did President Biden take to drive down the price of gasoline and fuel oil?

• Releasing oil from the US emergency stockpile

• Imposing tariffs on oil imports

• Encouraging renewable energy sources

• Subsidizing oil production

What is one way to address the issue of corporations having too much power in setting prices?

• Implementing stricter regulations and antitrust laws

• Providing tax incentives for corporations

• Encouraging competition through government subsidies

• Reducing government intervention in the market

What is the main message conveyed in the video?

• Inflation is a complex issue with multiple causes

• Government policies are solely responsible for inflation

• Inflation can be easily controlled by raising interest rates

• Corporations are the primary drivers of inflation