BMHS2_InflationUnemployment_2024Election

What is one of the main lessons from Trump's victory according to the text?

• The educated class is well connected

• People care more about inflation than unemployment

• Identity politics is effective

• Unemployment is the biggest concern

Who wrote that inflationary pressures were mounting in May 2021?

• Noah Smith

• Olivier Blanchard

• Larry Summers

• Paul Krugman

What did Paul Krugman initially believe about inflation in 2021?

• It was a major concern

• It was mostly transitory

• It would lead to a recession

• It was caused by identity politics

According to the text, what economic event did inflation in the 1970s lead to?

• The American Rescue Plan

• The Great Recession

• The election of Richard Nixon

• The rise of unemployment

What was the American Rescue Plan's total amount?

• $2.1 trillion

• $2.5 trillion

• $1.9 trillion

• $1.5 trillion

What did surveys indicate about inflation's importance in the election?

• It was not a major concern

• It was only a concern for Democrats

• It was the most important economic problem

• It was less important than unemployment

What is one reason inflation may upset voters more than unemployment?

• Inflation is easier to control

• Unemployment affects fewer people

• Unemployment is a temporary issue

• Inflation affects everyone’s purchasing power

What did the text suggest about the relationship between inflation and presidential approval?

• Inflation has no effect

• Inflation tends to improve approval ratings

• Cumulative inflation affects approval ratings

• Approval ratings are only affected by unemployment

What was the general consensus among economists about inflation and unemployment?

• Unemployment is always worse

• They are unrelated

• There is a trade-off between them

• Inflation is always worse

What did the text imply about the impact of inflation on real wages?

• Real wages increased during inflation

• Inflation had no effect on real wages

• Real wages were unaffected by inflation

• Inflation caused a drop in real wages