2/20 Act. 1 Bell Ringer Inflation

What does the U.S. inflation rate measure?

• The change in interest rates year over year

• The change in government spending year over year

• The change in employment rates year over year

• The change in prices year over year

How does the inflation rate respond?

• It increases as the economy contracts

• It responds to different phases of the business cycle

• It decreases as the economy expands

• It remains constant regardless of the economy

What is the Federal Reserve's annual target for inflation?

• 2%

• 3%

• 1%

• 5%

What was the inflation rate in the middle of 2022?

• 3.4%

• 5%

• 9.1%

• 2%

What was the inflation rate at the end of 2023?

• 2%

• 9.1%

• 3.4%

• 5%