Inflation and Economic Impact Quiz

According to the article, when demand is high, prices typically ____.

• go up

• go down

• stay the same

Which of the following was caused by the others?

• The Covid-19 pandemic disrupted the global supply chain.

• Factories slowed production because workers were sick.

• The inflation rate in the U.S. climbed higher and faster than usual (normal).

Which of the following has seen the greatest increase in price over the past year?

• clothing

• gasoline

• groceries

What is the main idea of the article?

• Paychecks are not rising as much as prices are.

• The Covid-19 pandemic caused inflation.

• Inflation caused by the pandemic, high demand, short supply, and the rising price of oil is affecting Americans.

What does Dana Karni mean when she says “And that’s a real tight squeeze”?

• Inflation is forcing many families to make tough choices about money.

• The problem of inflation is an exaggeration.

Which is a fee charged by a lender?

• demand

• inflation

• interest

What is the Federal Reserve doing to help reduce the problem of inflation?

• decreasing the fee people pay to borrow money

• raising interest rates until the demand for goods and services cools

• encouraging employers to raise employees’ wages

Which detail gives an example of how people are dealing with inflation?

• In addition, the global oil market was disrupted in February, when Russia invaded Ukraine.

• Walmart reports that its shoppers are buying cheaper store-brand items rather than pricier alternatives.

How does the sidebar “Supply and Demand After World War II” support the article?

• It provides historical background about inflation in the U.S.

• It explains the history of the Federal Reserve.

• It explains why costs will likely keep rising.

What conclusion about economics is best supported by the article?

• The U.S. has never faced high inflation before.

• Businesses often raise prices of their products to cover their own increased costs.

• The increase in oil prices has not affected inflation.